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On October 1, 1996, Acme Fuel Co. sold 100,000 gallons of heating oil to Karn Co. at $3. per gallon. Fifty thousand gallons were delivered on December 15, 1996, and the remaining 50,000 gallons were delivered on January 15, 1997. Payment terms were: 50% due on October 1, 1996, 25% due on first delivery and 25% due on the second delivery. What amount of revenue should Acme recognize from this sale during 1996?
a. $75,000
b. $150,000
c. $225,000
d. $300,000
The cost of the cloth is $3 per yard. The standard direct material cost for cloth per unit of finished product is:
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