A tax on the sellers of TVs a. leads buyers to demand a smaller quantity at every price. b. leads sellers to supply a larger quantity at every price. c. leads sellers to supply a smaller quantity at every price. d. Both (a) and (b) are correct.

Regarding the flow of costs through the inventory accounts, which of the following statements is incorrect? a. the costs flow from raw materials inventory to work-in-process inventory to finished goods inventory. b. the format for computing the amount used, manufactured, or sold is the same for all three inventory accounts. c. the final amount at each stage is added at the beginning of the next stage. d. purchases of raw material and freight in are debited to the work-in-process inventory account.