Fact Pattern A Central Construction Company (CCC) begins building a restaurant for Diners Cafe Corporation, but after two months demands an extra $100,000. Diners agrees to pay. Refer to Fact Pattern A. If CCC offers, as a reason for the extra $100,000, that ordinary business expenses have increased, the agreement is a. enforceable as an accord and satisfaction. b. unenforceable due to the preexisting duty rule. c. unenforceable as an illusory promise. d. enforceable because of unforeseen difficulties.

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For a firm that uses the weighted average method of process costing, which of the following must be true? (a) physical units can be greater than or less than equivalent units. (b) physical units must be equal to equivalent units. (c) equivalent units must be greater than or equal to physical units. (d) physical units must be greater than or equal to equivalent units.

Cherokee inc. is a merchandiser that provided the following information: amount number of units sold 20,000 selling price per unit $ 30 variable selling expense per unit $ 4 variable administrative expense per unit $ 2 total fixed selling expense $ 40,000 total fixed administrative expense $ 30,000 beginning merchandise inventory $ 24,000 ending merchandise inventory $ 44,000 merchandise purchases $ 180,000 required: 1. prepare a traditional income statement. 2. prepare a contribution format income statement.