It's C because 1-.15 is .85 then 1/.85 rounds to 1.18
Answer and Explanation:
The computation is shown below:
a. The manufacturing overhead is
= factory utilities + depreciation on factory equipment + indirect factory labor + indirect material + factory manager salary + property tax + factory repairs
= $16,500 + $12,650 + $48,900 + $70,800 + $8,000 + $2,500 + $2,000
= $161,350
b. The product cost is
= Direct material used + direct labor + total manufacturing overhead
= $157,600 + $79,100 + $161,350
= $398,050
c. The period cost is
= Depreciation on delivery truck + sales salaries + repairs to office equipment + advertising + office supplies used
= $3,800 + $48,400 + $1,300 + $23,000 + $4,640
= $81,140
a yardstick report would be used. it would be organized indirectly, describing the problem, explaining alternatives, establishing criteria for comparison, evaluating each alternative in terms of the criteria, and making recommendations.
Answer:
C) $22,727.
Explanation:
to calculate the 2019 layer, I will first determine the value of the 2019 inventory using LIFO:
(2018 inventory / 2018 price index) + (2019 inventory - 2018 inventory) = ($300,000 / 1.1) + ($350,000 - $300,000) = $272,727 + $50,000 = $322,727
to determine the LIFO layer = adjusted 2019 inventory - 2018 inventory = $322,727 - $300,000 = $22,727
The LIFO layer represents the difference in cost of goods sold from the ending of one year to the next year.
