Answer:
$73,500
Explanation:
The computation of the absorption costing net operating income last year is shown below:
= Variable costing net operating income - inventory units × Fixed manufacturing overhead cost per unit
= $81,900 - 2,800 units × $3
= $81,900 - $8,400
= $73,500
We simply deduct the fixed manufacturing overhead cost from the variable costing net operating income to find out the absorption costing net operating income
Answer:
C. Increase， Decrease
Explanation:
Inventory turnover is increased because there are very low or almost nill Closing inventorya as we divide the cost of goods sold with a lower number. Inventory as a percentage to total asset will be decrease because there will be a lower value ofinventory in the balance sheet. Comparing it with total value of asset tells us the percentage of total asset.
Answer:
Answer is A. USD 80/-
Explanation:
Using FIFO costing, we get:
- <u>Gross Profit = Sales - Cost of Goods Sold
</u>
COGS (Cost of Goods Sold) for two units,
COGS = First purchase + Second purchase
COGS = $70 + $80
COGS = $150
Sales = $230
- <u>Calculating the Gross Profit:
</u>
GP (Gross Profit) = Sales - Cost of Goods Sold
GP = $230 - $150
GP = $80
