Purchased merchandise on account that cost $4,190. the goods in event 1 were purchased fob shipping point with freight cost of $255 cash. returned $475 of damaged merchandise for credit on account. agreed to keep other damaged merchandise for which the company received an $210 allowance. sold merchandise that cost $2,690 for $13,000 cash. delivered merchandise to customers in event 5 under terms fob destination with freight costs amounting to $165 cash. paid $2,810 on the merchandise purchased in event 1. paid $8,630 cash for operating expenses.

Wallis company manufactures only one product and uses a standard cost system. the company uses a predetermined plantwide overhead rate that relies on direct labor-hours as the allocation base. all of the company's manufacturing overhead costs are fixed—it does not incur any variable manufacturing overhead costs. the predetermined overhead rate is based on a cost formula that estimated $2,886,000 of fixed manufacturing overhead for an estimated allocation base of 288,600 direct labor-hours. wallis does not maintain any beginning or ending work in process inventory.

If jobs have been undercosted due to underallocation of manufacturing overhead, then cost of goods sold (cogs) is too low and which of the following corrections must be made? a. decrease cogs for double the amount of the underallocation b. increase cogs for double the amount of the underallocation c. decrease cogs for the amount of the underallocation d. increase cogs for the amount of the underallocation

If the family’s net monthly income is 7,800 what percent of the income is spent on food clothing and housing?