A Lighthouse Point supplier accepts return of 22 unused units with $45 credit per unit. What material credit should reduce the trade cost?
Correct Answer
B) $990
Material credit equals returned quantity multiplied by credit per unit.
Why This Is the Correct Answer
Material credit equals returned quantity multiplied by credit per unit.
Why the Other Options Are Wrong
Option A: $67
$67 is below the supported result for material return credit; it likely omits part of the approved scope, cap, credit, or holdback.
Option C: $1,035
$1,035 is above the supported result for material return credit; it likely adds scope or money the rule does not allow.
Option D: $495
$495 is below the supported result for material return credit; it likely omits part of the approved scope, cap, credit, or holdback.
Memory Technique
Returned before dollars; multiplied before balance in Purchasing Manager.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Material returns and job cost credits; verify the trade cost, production, or field-control rule before answering.
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