Incidental costs sometimes are ignored in inventory costing because Incidental expenses are minor, non-budgeted expenses that are not directly related to primary service and do not arise during the normal course. Incidental cost which include the costs of transportation, meals, and lodging are common when an employee travels for business Inventory costs.
By calculating the most economic order quantity the firm attempts to determine the order size that will minimize the total inventory. Such practice of ignoring the incidental cost is permitted by materiality constraint because such cost will not affect the decisions of the business entity costs.
Materiality constraint means that transactions of little importance should not be recorded. A transaction may be recorded, but its importance and significance should be kept in mind. For example, a newly purchased pencil is an asset of the business. Whenever the pencil is used, a part of the asset is consumed.
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Answer:
1.
Sept - 30
DR Cash <u>$6,300</u>
CR Sales <u>$6,000</u>
CR Sales Tax <u>$300</u>
(<em>To record Cash sales and Tax Payable)</em>
<u>Working</u>
Sales Tax = 6,000 * 5%
= <em>$300</em>
2.
Oct - 15
DR Sales Tax Payable <u>$300</u>
CR Cash <u>$300</u>
(<em>To record remittance of Sales Tax to the State Government</em>)
3.
Sept - 30
DR Cost of Goods Sold <u>$3,900</u>
CR Merchandise Inventory <u>$3,900</u>
(<em>To transfer inventory to Cost of Goods sold) </em>
4. <em>Repeat question for question 2.</em>
5. <em>Repeat question for question 1.</em>
Why are all these questions so hard I don’t know the answer
Answer:
TRUE
Explanation:
It is true that if a costumer has a coupon for 30% off any skateboard and then another coupon for an extra 5% off a total purchase, you can simply add the coupons together to determine the discount as long as they are only buying one skateboard
.
The above assertion is correct because the amount of the skateboard will be the same as the amount for the sale, hence both percentages making up 35% can be applied to the skateboard amount.
<u>However if they buying more items than just a skateboard, the total amounts of the different items of purchase has to be added before applying the discount percentage.</u>
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