A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true? a.The company will decrease finished goods by $54,000. b.The company will recognize sales on the balance sheet of $150,000. c.The company will increase finished goods by $54,000. d.The company will recognize $96,000 in gross profit on the balance sheet.
A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true? a.The company will decrease finished goods by $54,000. b.The company will recognize sales on the balance sheet of $150,000. c.The company will increase finished goods by $54,000. d.The company will recognize $96,000 in gross profit on the balance sheet.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
Section: Chapter Questions
Problem 18E
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A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?
a.The company will decrease finished goods by $54,000.
b.The company will recognize sales on the balance sheet of $150,000.
c.The company will increase finished goods by $54,000.
d.The company will recognize $96,000 in gross profit on the balance sheet.
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