1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jasenka [17]
2 years ago
10

Which of the following statements regarding inventory costing methods is correct? Multiple Choice In periods of inflation, LIFO

will result in the lowest reported net income, and therefore a company will pay less in federal income taxes
Business
1 answer:
Lynna [10]2 years ago
3 0

Answer:

In periods of inflation, LIFO will result in the lowest reported net income, and therefore a company will pay less in federal income taxes ⇒ TRUE STATEMENT

Explanation:

Last in, first out (LIFO) uses the  price of the last units purchased in order to determine the cost of goods sold. When inflation is high, prices tend to increase continuously, therefore, the price of the last units purchased will always be higher than the price of the first units purchased. This doesn't mean that exactly the last units purchased will be the ones sold, it is just an accounting method.

You might be interested in
The following information is taken from the production budget for the first quarter: Beginning inventory in units 1000 Sales bud
olga2289 [7]

Answer:

The correct answer is 408,000 units

Explanation:

Computing the finished goods units to be produced during quarter is as:

= Desire units - Beginning inventory units

where

Desire units is 3,000

Beginning inventory units is 1,000

So,

=3,000 units - 1,000 units

= 2,000 units

Now, computing the finished goods units as:

Finished goods units = 2,000 units + Sales budgeted for the quarter

Finished goods units = 2,000 units + 406,000 units

Finished goods units = 408,000 units

NOTE: It should be 408,000 not 40800.

7 0
3 years ago
When Ruth was hired by Graham Services Inc. to head its customer service operations, she was told that her role involved supervi
Degger [83]

Answer:

<u>Management.</u>

Explanation:

The organizational management function corresponds to the set of functions related to the control, planning, coordination and application of principles at all organizational levels, using the best strategy of analysis of human and financial forces so that integrated form the set that will help the company to achieve organizational goals and objectives.

Being a leader is not an easy task, it takes experience and an attitude towards solving the needs and supervision of employees through an ethical and respectful posture, as well as having the tranquility to deal with different people, as well as the skills to integrate technical and social processes of the organization.

4 0
3 years ago
Nu Company reported the following pretax data for its first year of operations. Net sales 2,950 Cost of goods available for sale
melomori [17]

Answer:

NU company.

The reason LIFO and FIFO present 2 different valuation of inventory is because of the way inventory is expensed in either methods.

LIFO stands for Last in First out. Meaning the last stock to be received should be the first to be issued to production.

If it thus shows that our costs of inventory has been increasing over the period, the inventory expensed to cost of sales will be high while the inventory balance in the balance sheet low. And the reverse if the costs of new inventory purchases have been declining.

FIFO stands for First in First out. Meaning the first inventories receives must be exhausted before we move to the receipt after that, and on and on.

If it thus shows that our costs of inventory has been increasing over the period, the inventory expensed to cost of sales will be low while the inventory balance in the balance sheet high. And the reverse if the costs of new inventory purchases have been declining

Nu company Gross Profit

Net sales $2,950

Less costs of sales:

Cost of goods available for sale 2,350

Less inventory closing 920

Costs of sales 1,430

Gross profit $1,520

Gross Profit % = $1,520 / $2,950

= 52% (c)

3 0
3 years ago
in the event of a conflict between the statutory duties of intermediary and the common law duties of dual agency of a broker, wh
anyanavicka [17]

In the event of a conflict between the statutory duties of the intermediary and the common law duties of the dual agency of a broker, which takes precedence is Statutory intermediary.

The definition of statutory is something mandated by way of or related to statutes, which are legal guidelines or payments exceeded by the legislature. An example of statutory law is the regulation observed inside the easy Air Act, a federal statute.

Statutory rights are the minimum rights guaranteed to clients ruled by means of the consumer Rights Act 2015. The regulation stipulates a store is obliged to offer goods that are of first-rate pleasant, suit for purpose, and as described.

Statutory obligations and rights of employees and employers. As soon as a member of staff starts working in a selected business enterprise, they're entitled to sure statutory rights. those rights relate to fitness & protection, phrases, and conditions of employment, identical possibilities, pay, and greater.

Learn more about statutory here brainly.com/question/864793

#SPJ4

8 0
1 year ago
Disposal of Plant Asset
antiseptic1488 [7]

Answer and Explanation:

The Journal entry is shown below:-

a. Depreciation expense - Airplane Dr, $75,000

         To Accumulated depreciation - Airplane  $75,000

(Being depreciation expense for 8 months is recorded)

b. Cash Dr, $250,000

Accumulated depreciation - Airplane Dr, $750,000

       To Airplane $1,000,000

(Being the sale of airplane is recorded)

c. Cash Dr, $300,000

Accumulated depreciation - Airplane $750,000  

      To Airplane $1,000,000

       To Gain on sale of airplane $50,000

(Being the sale of airplane is recorded)

d. Cash Dr, $220000

Loss on sale of airplane Dr, $30,000

Accumulated depreciation - Airplane Dr, $750,000

         To Airplane $1,000,000

(Being the sale of airplane is recorded)  

e. Insurance settlement Dr, $210,000

Loss of insurance settlement Dr, $40,000

Accumulated depreciation - Airplane $750,000

         To Airplane $1,000,000

(Being insurance claim on airplane destroyed by fire is recorded)

Working Note:-

Under Straight-line method:

Depreciation per annum = (Cost of asset - Salvage value) ÷ Useful life

= ($1,000,000 - $100,000) ÷ 8 years

= $112,500

So, the Ben company will depreciate the airplane for 8 years by $112,500 every year.

Accumulated depreciation for six years = $112,500 × 6 years

= $675,000

a.  Depreciation expense for 8 months = $112,500 × (8 ÷ 12)

= $75,000

b.  Accumulated depreciation up to the date of disposal = Accumulated depreciation + Depreciation expense

= $675,000 + $75,000

= $750,000

Hence,

The Book value at the date of disposal = $1,000,000 - $750,000

= $250,000

c.  Gain on sale of airplane = (Accumulated depreciation + Cash) - Cost of asset

= ($750,000 + $300,000) - $1,000,000

= $50,000

d.  Loss on sale of airplane = Cost of asset - (Accumulated depreciation + Cash)

= $1,000,000 - ($750,000 + $220,000)

= $30,000

e.  Loss of insurance settlement = Cost of asset - (Accumulated depreciation + Insurance settlement)

= $1,000,000 - ($750,000 + $210,000)

= $40,000

5 0
3 years ago
Other questions:
  • Nichols Enterprises has an investment in 26,000 bonds of Elliott Electronics that Nichols accounts for as a security available f
    8·1 answer
  • What refers to the quantity of goods and services that consumers are willing to buy at a given price? refers to the quantity of
    13·2 answers
  • Gina and Chen are both managers at CPA4U, a large accounting firm. Each has a very different management style. Gina is very outg
    9·1 answer
  • Given the following owner’s income and expense estimates for an apartment property, formulate a reconstructed operat-ing stateme
    15·1 answer
  • A sporting equipment store expects to purchase $8,700 of ski boots in October. The store had $2,300 of ski boots in merchandise
    5·1 answer
  • Which person argued that a corporate manager's primary responsibility is to the shareholders of the organization and that manage
    7·2 answers
  • Farm Country and Industry Country are two neighboring countries. Both countries produce only one​ good: good X. Production in bo
    11·1 answer
  • Hanover, inc. purchased land through the issuance of long-term bonds. how is this reported on the statement of cash flows?
    13·1 answer
  • What is your idea of success?
    9·2 answers
  • Assume that the adult population of the United States is 191.6 million, total employment is 117.6 million, and 9.4 million are u
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!