FINANCIAL ACCOUNTING: TOOLS WP ACCESS
8th Edition
ISBN: 9781119230069
Author: Kimmel
Publisher: WILEY
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Textbook Question
Chapter 6, Problem 19Q
Why is it inappropriate for a company to include freight-out expense in the Cost of Goods Sold account?
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Which of the following should not be taken into account when determining the cost of inventory?
A. Storage cost of part finished goodsB. Trade discount C. Import duty on shipping of inventory inward D. Freight cost on purchase
Which of the following is not permitted as a cost of inventory?
a) Non-recoverable taxes
b) Storage costs
c) Fixed manufacturing overheads
d) Shipping
Which of the following is reported as part of the operating expenses?
Cost of sales
Freight-In
Sales allowances
Freight-Out
Chapter 6 Solutions
FINANCIAL ACCOUNTING: TOOLS WP ACCESS
Ch. 6 - The key to successful business operations is...Ch. 6 - Prob. 2QCh. 6 - What is just-in-time inventory management? What...Ch. 6 - Prob. 4QCh. 6 - Prob. 5QCh. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - What is the major advantage and major disadvantage...Ch. 6 - The selection of an inventory cost flow method is...
Ch. 6 - Which assumed inventory cost flow method: (a)...Ch. 6 - Prob. 12QCh. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Prob. 18QCh. 6 - Why is it inappropriate for a company to include...Ch. 6 - Prob. 20QCh. 6 - Prob. 21QCh. 6 - Prob. 22QCh. 6 - When perpetual inventory records are kept, the...Ch. 6 - How does the average-cost method of inventory...Ch. 6 - Prob. 25QCh. 6 - Prob. 6.1BECh. 6 - Prob. 6.2BECh. 6 - Prob. 6.3BECh. 6 - Prob. 6.4BECh. 6 - Prob. 6.5BECh. 6 - Prob. 6.6BECh. 6 - Prob. 6.7BECh. 6 - Prob. 6.8BECh. 6 - Prob. 6.9BECh. 6 - Prob. 6.10BECh. 6 - Prob. 6.11BECh. 6 - Prob. 6.1DIECh. 6 - Prob. 6.2DIECh. 6 - Prob. 6.3ADIECh. 6 - Prob. 6.3BDIECh. 6 - Prob. 6.1ECh. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Prob. 6.4ECh. 6 - Prob. 6.5ECh. 6 - Prob. 6.6ECh. 6 - Prob. 6.7ECh. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Prob. 6.12ECh. 6 - Prob. 6.13ECh. 6 - Inventory data for Jeters Company are presented in...Ch. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Prob. 6.1APCh. 6 - Prob. 6.2APCh. 6 - Prob. 6.3APCh. 6 - Prob. 6.4APCh. 6 - Prob. 6.5APCh. 6 - Prob. 6.6APCh. 6 - Prob. 6.7APCh. 6 - Prob. 6.8APCh. 6 - Prob. 6.9APCh. 6 - Prob. 6.1CACRCh. 6 - Prob. 6.1EYCTCh. 6 - Prob. 6.2EYCTCh. 6 - Prob. 6.3EYCTCh. 6 - Prob. 6.4EYCTCh. 6 - The July 15, 2010, edition of CFO.com contains an...Ch. 6 - Prob. 6.7EYCTCh. 6 - Prob. 6.8EYCTCh. 6 - Prob. 6.9EYCTCh. 6 - Prob. 6.10EYCTCh. 6 - Prob. 6.11EYCTCh. 6 - Prob. 6.1IFRSCh. 6 - Prob. 6.2IFRSCh. 6 - Prob. 6.3IFRS
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Why must support service costs be assigned to products for purposes of inventory valuation?arrow_forwardCompanies that use OSD can deduct the cost of goods sold or the cost of services provided. Is it true or false?arrow_forwardFor purposes of computing the MCIT, which will not form part of cost of goods sold for traders: a. Invoice cost c. Freight b. Import duties d. Wharfagearrow_forward
- Explain the difference between freight in and freight out. Who pays for each? Who owns the goods while they are in transit? What type of account is freight in? What type of account is freight out?arrow_forwardWhat is the effect on the cost of goods sold, gross profit, and net income if ending merchandise inventory is understated?arrow_forwardwhich amongst the following would not form part of cost of equipment? A) freight charges B) equipment license C) cost of installations of the equipment D) sales tax paidarrow_forward
- Why do you add transportation in and do not deduct delivery expense when determining the cost of merchandise purchased?arrow_forwardWhen a company uses LIFO for external reporting purposes FIFO for internal reporting pusposes, an Allowance to Reduce Inventory to LIFO account is used. This account should be reported? A) on the income statement in the other Revenue and gains section. B) on the income statement in the cost of goods sold section. C) on the income statement in the other Expenses and losses section. D) on the balance sheet in the current asset section.arrow_forwardWhich of the following would not be considered a component of the "cost" of Goods Sold?a. Salesforce Salariesb. Transportation for purchasec. Import duties or raw materiald. Factory electricity expensearrow_forward
- is freight out/transportation out included in the calculation of cost of goods manufactured?arrow_forwardWhat are the differences between accounting for service companies and accounting for merchandise companies?arrow_forward1. Which of the following costs shall be considered as period cost instead of product cost? A.Finance cost on inventory loan and foreign exchange differences arising from purchases B.Freight-in and insurance while in transit of the raw materials C.Non-creditable import duties and irrevocable value added tax D.Cost of indirect material used and indirect labor incurred E.None of the above.arrow_forward
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