Ted Was Shopping for a New Computer

question 36

Essay

Ted was shopping for a new computer.He found one that met his needs and agreed to purchase it for $1,200.After he had paid for the computer,he discovered a rebate coupon inside the packaging.He filled out the required form and sent it to the manufacturer.The next week he received a $100 check from the manufacturer.How much should Ted include in gross income?

Analyze the impact of variances on financial statements.

Record purchases and usage of raw materials.

Record direct labor costs and understand their impact on product costs.

Understand the treatment and impact of variances at year-end, including closing variances to Cost of Goods Sold.