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1 year ago

Inventory costing methods place primary reliance on assumptions about the flow of.

1 answer:

3 0

Inventory costing methods rely heavily on assumptions about the flow of costs. The most widely used inventory valuation method is the FIFO method.

FIFO (First-In, First-Out), LIFO (Last-In, First-Out), Specific Identification, and Weighted Average Cost are the 4 major Inventory costing methods. If your inventory costs are steady or increasing, LIFO is the better option. Businesses with bigger inventories and rising costs appreciate how LIFO reduces profits and taxes while increasing cash flow. If your inventory costs are decreasing, FIFO is the better option.

Learn more on Inventory costing methods-

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Levelor Company's flexible budget shows $10,750 of overhead at 75% of capacity, which was the operating level achieved during Ma

zhannawk [14.2K]

Answer:

The controllable variance for the month was $1,709 unfavorable

Explanation:

Controllable variance: The controllable variance show a difference between actual overhead expenses incurred and budgeting operating level based on direct labor hour.

In mathematically,

Controllable variance = Actual overhead expenses - budgeting operating level based on direct labor hour

where,

Actual overhead expenses = $11,227

And, budgeted operating level based on direct labor hour

= budgeted operating level × direct labor per hour

= 6,160 × $2.10

= $12,936

Now, put these values on the above formula:

So,

Controllable variance = $11,227 - $12,936 = $1,709 unfavorable

Hence, the controllable variance for the month was $1,709 unfavorable

6 0

3 years ago

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the Dominator. Data on operations a

VARVARA [1.3K]

Answer:

Basic = $140.82

Dominator = $392.216

Explanation:

For Basic:

Total cost for Basic:

= Direct materials costs + Direct labor costs + Manufacturing overhead

= $ 11,000 + $72,000 + $128,232

= $211,232

Per unit cost:

= Total cost for Basic ÷ Number of units produced

= $211,232 ÷ 1,500

= $140.82

For Dominator:

Total cost for Dominator:

= Direct materials costs + Direct labor costs + Manufacturing overhead

= $3,500 + $34,000 + $60,554

= $98,054

Per unit cost:

= Total cost for Basic ÷ Number of units produced

= $98,054 ÷ 250

= $392.216

Workings:

Manufacturing overhead (Basic):

= Manufacturing overhead costs × (Direct labor costs ÷ Total direct labor costs)

= $188,786 × ($72,000 ÷ $106,000)

= $128,232

Manufacturing overhead (Dominator):

= Manufacturing overhead costs × (Direct labor costs ÷ Total direct labor costs)

= $188,786 × ($34,000 ÷ $106,000)

= $60,554

7 0

4 years ago

Fancy Farms purchased equipment on January 1 at a cash cost of $30,000. The estimated life is 10 years and the estimated residua

DanielleElmas [232]

Answer:

4,800

Explanation:

$\left[\begin{array}{ccccc}Year&Beginning&Dep-Expense&Acc. \: Dep&Ending\\0&-&-&-&30,000\\1&30,000&6,000&6,000&24,000\\2&24,000&4,800&10,800&19,200\\3&19,200&3,840&14,640&15,360\\\end{array}\right]$

The double declining will be the straight-line rate times two.

straight-line = 1/10

double declining = (1/10) x 2 = 2/10 = 1/5 = 20%

The first year will be:

30,000 x 20% = 6,000 depreciation expense

then we calculatethe book value for the second year

30,000 - 6,000 = 24,000

now we clacualte the depreciation expense for the 2nd year

24,000 x 20% = 4,800

This process is repeat every year until the book value equalt the salvage value at the end of the 10th year.

3 0

4 years ago

A b c d

lina2011 [118]

Answer:

Net Sales a. $ 150,000, b. $ 902,500, c.$ 50,600, d.$ 268,500

Gross Profit a. $ 50,850 b. $ 344,755 c. $ 11,638 d. $ 139,083

Gross Margin ratio a. 33.9 %, b. 38.2 %, c. 19.9 %, d. 51.8 %

Explanation:

Computations of data requirements

a b c d

$ $ $ $

Sales 169,000 930,000 57,000 276,000

Less: Sales discounts ( 4,000) ( 21,500) ( 600) ( 5,300)

Less Sales return and allowances <u>( 15,000) ( 6,000) (5,800) ( 2,200)</u>

Net Sales 150,000 902,500 50,600 268,500

Cost of Goods Sold <u> 99,150 557,745 38,962 129,417</u>

Gross Profit 50,850 344,755 11,638 139,083

Gross Margin Ratio % 33.9 % 38.2 % 19.9 % 51.8 %

5 0

3 years ago

Suppose that two things happen simultaneously in the market for fish. First, a new technology allows fishing boats to catch more

erastova [34]

Answer: Option (a) is correct.

Explanation:

Advanced technology is a determinant of supply and consumer taste & preferences is a determinant of demand.

Therefore, improvement in technology in catching fish will lead to increase the supply of fish and this will shift the supply curve rightwards. On the other hand, eating fish prevents heart attacks, hence, consumer's demand for fish increases, as a result demand curve for fish also shifts rightwards.

This will lead to increase the equilibrium quantity but effect on equilibrium price is ambiguous because it will be depend upon the magnitude of the shifts of demand and supply curve.

3 0

3 years ago