Lewis Inchad the Following Information Taken from Various Accounts at the the End

question 40

Multiple Choice

Lewis Inc.had the following information taken from various accounts at the end of the year: What was Lewis Inc.'s net revenues for the year?
$$\begin{array} { | l | r | } \hline \text { Sales discounts } & \$ 41,000 \\\hline \text { Deferred revenues } & \$ 32,000 \\\hline \text { Total sales } & \$ 459,000 \\\hline \text { Purchase discounts } & \$ 15,000 \\\hline \text { Sales allowances } & \$ 35,000 \\\hline \text { Accounts receivable } & \$ 205,000 \\\hline\end{array}$$

• A)$368,000.
• B)$434,000.
• C)$383,000.
• D)$437,000.

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Definitions:

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.

Production Orders

Instructions or commands produced to initiate the manufacture of a specific quantity of goods at a specified time.

Activity-Based Costing

A costing method that allocates overhead and indirect costs to specific activities, providing more accurate product costing.

Direct Labor Rate

The cost of the work done by those employees who directly manufacture the products, usually measured per hour.