Scribd
Upload
126 views2 pages

Accounting and Inventory Insights

The document discusses freight costs paid by Jel Co. for goods shipped from Dale Co. These costs are to be deducted from Jel's payment to Dale when the goods are sold. Until the goods are sold, the freight costs should be included in Jel's [Accounts receivable].

Uploaded by

Rosemarie Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
126 views2 pages

Accounting and Inventory Insights

The document discusses freight costs paid by Jel Co. for goods shipped from Dale Co. These costs are to be deducted from Jel's payment to Dale when the goods are sold. Until the goods are sold, the freight costs should be included in Jel's [Accounts receivable].

Uploaded by

Rosemarie Cruz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

B.

Accounts receivable

el Co., a consignee, paid the freight costs for goods shipped from Dale Co., a consignor. These freight
costs are to be deducted from Jel's payment to Dale when the consignment goods are sold. Until Jel sells
the goods, the freight costs should be included in Jel's

A. Cost of goods sold.

B. Accounts receivable.

C. Selling expenses.

D. Freight-out costs.

A. Yes, No

During periods of inflation, a perpetual inventory system would result in the same dollar amount of
ending inventory as a periodic inventory system under which of the following inventory valuation
methods?

FIFO, LIFO

A. Yes, No

B. Yes, Yes

C. No, Yes

D. No, No

B. $910,000

The following information was taken from Cody Co.'s accounting records for the year ended December
31, 2005:

Decrease in raw materials inventory$ 15,000

Increase in finished goods inventory 35,000

Raw materials purchased 430,000

Direct labor payroll 200,000

Factory overhead 300,000

Freight-out 45,000
There was no work-in-process inventory at the beginning or end of the year. Cody's 2005 cost of goods
sold is

A. $955,000

B. $910,000

C. $895,000

D. $950,000

C. $5,350

Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of
product A during the month of January were as follows:

Units

You might also like