Wyman Corporation Uses a Process Costing System

question 15

Multiple Choice

Wyman Corporation uses a process costing system. The company manufactured certain goods at a cost of $800 and sold them on credit to Percy Corporation for $1,075. The complete journal entry to be made by Wyman at the time of this sale is:

• A) Debit Finished Goods Inventory $800; debit Sales $1,075; credit Accounts Receivable $1,075; credit Cost of Goods Sold $800.
• B) Debit Accounts Receivable $1,075; debit Selling expense $800; credit Sales $1,075; credit Cost of Goods Sold $800.
• C) Debit Cost of Goods Sold $1,075; credit Sales $1,075.
• D) Debit Accounts Receivable $1,075; credit Sales $275; credit Finished Goods Inventory $800.
• E) Debit Accounts Receivable $1,075; credit Sales $1,075; debit Cost of Goods Sold $800; credit Finished Goods Inventory $800.

Explain the concept and advantages of the formula sales presentation method.

Determine the appropriate sales presentation method for given sales situations.

Understand the role of customer participation and interaction in sales presentations.

Describe the sequence and effectiveness of problem-solution presentations.

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Definitions:

Effective Principles

Fundamental norms or rules of conduct that, when followed, contribute to achieving desired outcomes efficiently and successfully.

Suggestion System

A formal mechanism within an organization where employees can submit ideas or proposals for improvements in processes, products, or overall operations.

Written Ideas

Concepts, thoughts, or plans expressed through written language.

Lower Pay

Compensation that is considered below the average or norm for a role or industry.