The answer would be A) True.
Answer:
(a) $1,760
(b) $1,100
Explanation:
Given that,
Skysong, Inc. made three purchases of merchandise:
(1) 320 units at $5
(2) 420 units at $7
(3) 520 units at $8
Units on hand at the end of the period = 220
(a) Under FIFO method,
cost of ending inventory:
= Units on hand at the end of the period × $8 (From the last purchase)
= 220 × $8
= $1,760
(b) Under LIFO method (Comprise units from the first purchase),
cost of ending inventory:
= Units on hand at the end of the period × $8 (From the first purchase)
= 220 × $5
= $1,100
Interest corporate bonds is taxed as an income tax but can also be tax as capital gain. Usually the interest itself is considered as state income tax. For gain and losses, that's the time it will gain capital gain if the if is redeemed before its maturity stage.
Answer:
Consolidation
Explanation:
Holding method is required for the parent company for financial reporting if the parent company owns 51 percent of more outstanding common stock in the subsidiary.
Here consolidate refers to the combining of total assets and liabilities of two or more entities into one so that it could be maintained as a one firm
Therefore for financial reporting consolidation is appropriate
Garage corp. uses a batch-and-queue or batch-and-wait production system wherein the sub-assembly or the partially completed product is move to the work-in-progress (WIP) location, the next department to take it from WIP location, perform an operation on them and then forward the resulting work into the next WIP location to wait once again. This procedure continuous until the final product is completed. Using this system, the Garage corp. produces and maintains large inventories since it drives products to lower average unit cost, so they need to produce more products and the more products produced, the greater the inventory asset. They will produce products of low quality since workers in traditional production do not have major responsibility for quality control during their work. They strive for efficiency which means producing the best yield at the lowest cost from the available resources but in the expense of effectiveness which is the degree where an objective or target is met. It is doing something right but not doing it right. And lastly they have an information loss between its organizational areas because they operate in a disconnected manner with little integration and communication.
