Solved

Match Each Key Term with Its Appropriate Definition

Question 171

Matching

Match each key term with its appropriate definition.

Premises:
Includes direct labor, raw materials, and manufacturing overhead.
Buyer recognizes purchase of inventory at shipment.
The requested goods will be delivered to the buyer at a later date.
Not recognized in inventory until delivered.
A temporary account is used to record purchases.
Goods ready for sale.
Buyer recognizes purchase of inventory at destination.
Purchases are recorded in an inventory account.
A third party acts as a sales agent for another company’s goods.
Tangible goods used in production
Responses:
Bill and hold sale
Consigned Goods
Finished Goods Inventory
FOB Destination
FOB Shipping Point
Periodic Inventory
Perpetual Inventory
Purchase obligation
Raw Materials Inventory
Work-in-Process Inventory

Correct Answer:

Includes direct labor, raw materials, and manufacturing overhead.
Buyer recognizes purchase of inventory at shipment.
The requested goods will be delivered to the buyer at a later date.
Not recognized in inventory until delivered.
A temporary account is used to record purchases.
Goods ready for sale.
Buyer recognizes purchase of inventory at destination.
Purchases are recorded in an inventory account.
A third party acts as a sales agent for another company’s goods.
Tangible goods used in production
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