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bija089 [108]
2 years ago
9

Which inventory costing method assumes that items in ending inventory are the most recently acquired?

Business
1 answer:
dexar [7]2 years ago
4 0

The Last-In, First-Out (LIFO) inventory costing method assumes that items in ending inventory are the most recently acquired.

<h3>What is LIFO and FIFO methods of inventory?</h3>

LIFO refers to the Last In, First Out. LIFO is a method that assumes that the last unit that has been added in the inventory or more recently, will be sold first.

FIFO stands for First In, First Out. FIFO method assumes that the oldest unit of inventory that has been added first, would be sold first.

Basically, FIFO and LIFO accounting are the inventory costing methods used in managing inventory.

Learn more about LIFO and FIFO here:-

brainly.com/question/17236535

#SPJ4

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At May 31, 2017, the accounts of Lopez Company show the following.
frosja888 [35]

Answer:

a. cost of goods manufactured schedule.

Direct materials                                             $62,400

Direct labor                                                    $50,000

Manufacturing overhead applied                $40,000

Add Opening work in process Inventory     $14,700

Less Closing work in process Inventory    ($15,900)

Cost of goods manufactured                       $151,200

b. income statement for May

Sales Revenue                                                                $215,000

Less Cost of Goods Sold :

Opening finished goods Inventory             $12,600

Add Cost of goods manufactured             $151,200

Less Closing finished goods Inventory     ($12,600)  ($176,400)

Gross Profit                                                                     $38,600

c.presentation of the manufacturing inventories

raw materials        $7,100

work in process $15,900

finished goods    $9,500

Total Inventory  $32,500

Explanation:

a.Cost of Goods Manufactured schedule included all the manufacturing costs incurred during production.

b.The Income statement is used to calculate gross profit as Sale less Cost of Sales.

c.The  manufacturing inventories are presented in the balance sheet in their older of liquidity starting with the least liquid category.

7 0
3 years ago
If the accountant forgets to adjust the Prepaid Expenses account, there will be:_____
ivann1987 [24]

Answer:

Option B, an overstatement of net income, is the right answer.

Explanation:

Option “B” is correct because when the prepaid expenses occur then it is recorded in the balance sheet on the asset side and the cash will be reduced by the same amount. However, if the prepaid expenses have not been adjusted then it will show the overstatement of net income because cash has been gone so actual cash will be lower than the recoded cash. Thus, option B is right.

7 0
3 years ago
From the following information extracted from the Balance Sheet of XYZ Company, you are required to calculate:
Art [367]

Answer:

Ethats really cool can you mark me as brainliest

8 0
2 years ago
We have the following CAPM E(Ri) = .06 + .08 Beta; a) If Stock X has a beta of 2, what is the required rate of return? b) If we
sergiy2304 [10]

Answer:

Please kindly go through explanation for the answers.

Explanation:

A)The required return if Beta is 2 = 0.06+0.08*2 =0.22

B)Here Rf = 0.06

Expected return of the portfolio = 0.4*22% + 0.6*6% =12.4%

since beta of Rf = 0,the expected beta = 0.4*2 = 0.8

C)Beta is nothing but systematic risk of a security in comparing to the market. In this case stock z having beta of 1.5 which is less than beta of stockX i.e 2. and expected return is 15%.so stockz is offering lower return at lower risk. If the investor is a risk averse its a good buy.

D) let W be portion of stock X.

Then w*2 + (1-w)*0 = 1.5

W = 1.5/2 =0.75

to construct a portfolio which has a beta of 1.5 we have to invest 75% of our money in stock X and remaining in risk free asset

E) expected return = 0.22*.75 +0.25*0.06 = 16.5% + 1.5% = 18%

4 0
3 years ago
The capital accounts of Harrison and Marti have balances of $160,000 and $110,000, respectively, on January 1, the beginning of
blagie [28]

Answer:

b.$216,000

Explanation:

The computation of the balance in the capital account for Harrison is shown below:

= Opening balance + additional invested amount - withdrawn amount + net income distributed

= $160,000 + $20,000 - $96,000 + $132,000

= $216,000

We assume that the net income is equally distributed.

Since we have to determine for the Harrison only so we ignored the Marti data which is given in the question

4 0
3 years ago
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