This stament is true in my opinion because in order to make a story you have to go by the steps so like you have to write a rough draft
FIFO method :
Amount of Net Ducome GA per F1 Fo
Net Income (After Tan) $2144 mule
Add Income Tan Changed
(2144 X 100/70) X 30%. 76 $918.857 rude
$3062.857 nis
Add Closing Inventory Incrare as bei FIFO 293
Lesso Open Deventory Ducres asper FIFO (290 nulls)
Income before Taxes 3065.857 null
Income Taxes 30 y. (919.757 null)
Net Income 2146. to Pullen
FIFO ("first in, first out") is based on these production costs, assuming that the oldest products in a company's inventory are sold first. The LIFO (last in, first out) method assumes that the newest product in the company's inventory was sold first, and uses that cost instead.
FIFO (First In, First Out) Inventory Management evaluates inventory to reduce the likelihood of business losses when products are phased out or discontinued. LIFO (last in, first out) inventory management is suitable for non-perishable goods and uses the current price to calculate the cost of goods sold.
Learn more about FIFO at
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Answer:
Variable cost = $6,550
Explanation:
Variable cost is the cost incurred during the production process that changes with quantity of goods produced. For example labor, machine operating cost, and raw materials.
The other type of cost is variable cost that does not change with volume of production, but rather remains constant. For example rent, tax, and so on.
In the given instance the costs that are variable are cost of labor, cost of electricity to run printing presses, and cost of ink for paper.
Monthly mortgage and property tax are fixed cost that must be paid regardless of production volume.
variable cost = $5,500 + $800 + $250
Variable cost = $6,550