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Ne4ueva [31]
3 years ago
10

Bread Co. commenced operations during the year as a large importer and exporter of baked goods. The imports were all from one co

mpany in France. The export sales were conducted as drop shipments. Bread never took possession of the goods and they were merely transshipped at San Francisco. Bread Co. reported the following data:Purchases during the year$15.0 millionShipping costs from overseas$1.5 millionShipping costs to export customers$1.0 millionInventory at year end$3.0 millionWhat amount of shipping costs should be included in ABC Trading's year-end inventory valuation?a. $0b. $200,000c. $300,000d. $500,000
Business
1 answer:
storchak [24]3 years ago
3 0

Answer: c. $300,000

Explanation:

Here, the shipping costs from overseas is part in inventory costs whereas the shipping costs to export are part of expense not inventory.

Given: Purchases during the year  $15.0 million

Shipping costs from overseas$1.5 million

Shipping costs to export customers$1.0 million

Inventory at year end $3.0 million

Amount of shipping costs should be included in ABC Trading's year-end inventory valuation = (Inventory at year end)÷(Purchases during the year ) × (Shipping costs from overseas)

= ($3,000,000) ÷ ($15,000,000) × ($1,500,000)

= $300,000

Hence, the correct option is c. $300,000.

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Entrepreneurs use distributors to purchase resources and invest in the production of goods. True or false?.
ANEK [815]

Entrepreneurs do not use distributors to purchase resources and invest in the production of goods so this statement is FALSE.

<h3>How do Entrepreneurs purchase resources?</h3>

Entrepreneurs are able to invest in the production of the goods and services they provide by using their own funds and liability.

They do not use distributors but rather foot the bills as well as getting loans to be able to engage in the purchase of resources.

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4 0
2 years ago
Teton Trails manufactures backpacks for adventurers. The backpacks come in two types: Daytripper, and Excursion. Teton anticipat
nikklg [1K]

Answer:

The production level of Daytripper will be 2010 backpacks and the production level of Excursion will be 1185 backpacks. Thus, option C is the correct answer.

Explanation:

The production volume in July can be calculated by adding the production for July and the closing inventory in July and deducting the opening inventory in July from it.

Production level = Closing Inventory + Production - Opening Inventory

Daytripper = (2200 * 0.05) + 2000 - (2000 * 0.05)

Daytripper = 2010

Excursion = (900 * 0.05) + 1200 - (1200 * 0.05)

Excursion = 1185

3 0
3 years ago
On June 15, Oakley Inc. sells inventory on account to Sunglass Hut (SH) for $1,000, terms 2/10, n/30. On June 20, SH returns to
RUDIKE [14]

Answer:

$686

Explanation:

the journal entries necessary to record the sale:

June 15, inventory sold on account to Sunglass Hut, terms 2/10, n/30

Dr Accounts receivable 1,000

    Cr Sales revenue 1,000

June 20, partial return of purchase from Sunglass Hut

Dr Sales returns and allowances 300

    Cr Accounts receivable 300

June 24, invoice is paid within discount period

Dr Cash 686

Dr Sales discounts 14

    Cr Accounts receivable 700

4 0
3 years ago
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