Which of the following costs will not affect cost of goods sold?
A)Inventory inspection costs.
B)Inventory preparation costs.
C)Inventory-related selling costs.
D)Freight charges incurred to bring inventory to the warehouse.
Which of the following costs is not included as inventory on the balance sheet?
A)Raw materials to be used in the manufacturing process.
B)Work in process.
D)Freight-out costs for finished goods sent to retailers.
Which of the following would not be a component of the year-end inventory balance?
B)Inventory inspection costs.
C)Inventory preparation costs.
D)Inventory-related selling costs.
Which of the following is correct?
A)The raw materials inventory account is used to record inventory purchased by a retailer for resale.
B)Work in process is an expense account used by a manufacturing company.
C)Finished goods is an asset account used by a manufacturing company to record the cost of inventory ready for sale.
D)Retailers use a purchases account to record raw materials inventory.