The Peric Manufacturing Shop Produces Motorcycle Parts $\begin{array} { l } \text {Work-in-Process Control } &96\\ \text {Materials Control } &96\\\end{array}$

question 152

Multiple Choice

The Peric Manufacturing Shop produces motorcycle parts.Typically,12 pieces out of a job lot of 1,000 parts are spoiled.Costs are assigned at the inspection point,$40.00 per unit.Spoiled pieces may be disposed at $8.00 per unit.The spoiled goods must be inventoried appropriately when the normal spoilage is detected.The current job requires the production of 3,000 good parts. Which of the following journal entries would be correct if the spoilage occurred due to specifications required for Job 101?

• A) \(\begin{array} { l }
• \text {Work-in-Process Control } &96\\ \text {Materials Control } &96\\
• \end{array}\)
• B) \(\begin{array} { l }
• \text { Materials Control} &96\\ \text {Work-in-Process Control } &96\\
• \end{array}\)
• C) \(\begin{array} { l }
• \text {Materials Control } &288\\ \text {Work-in-Process Control } &288\\
• \end{array}\)
• D) \(\begin{array} { l }
• \text {Work-in-Process Control }&288 \\\text {Materials Control }&288 \\
• \end{array}\)

Understand the effects of tariffs on international trade.

Analyze the impact of trade policies on consumer and producer surplus.

Identify how tariffs influence domestic prices and quantities in international markets.

Evaluate the implications of free trade versus protectionist policies.

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Definitions:

Accrual Basis

The accrual basis of accounting records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Cash Basis

An accounting method where revenues are recognized when cash is received, and expenses are recorded when cash is paid.

Debit Portion

The side of an accounting entry that increases asset or expense accounts or decreases liability, equity, or revenue accounts.

Asset Account

A category in accounting ledgers that records the increases and decreases in specific assets owned by a business.