Answer:
b. greater under absorption costing than variable costing.
Explanation:
The question is to calculate the closing value of inventory and based on the choices, we need to calculate based on both the Absorption Costing and the Variable Costing Methods.
1. Closing Inventory based on Variable Costing Method
Direct Material $40
Direct Labour $30
Variable Overhead $2
Fixed Overhead <u>$0 </u>(this method does not reecognise fixed cost
Totals (Unit cost of Production) $72
Based on this, the closing inventory is $72 x (8,000+50,000-55,000 units)
=$77 x 3,000= $216,000
2. Closing Inventory based on Absorption Costing Method
Direct Material $40
Direct Labour $30
Variable Overhead $2
Fixed Overhead <u>$5</u>
Totals (Unit cost of Production) $77
Based on this, the closing inventory is $77 x (8,000+50,000-55,000 units)
=$77 x 3,000= $231,000
Based on these calculations:
The Ending Inventory is higher/Greater under absorption costing than variable costing and the reason is that variable costing does not recognize fixed cost in determining the value of ending inventory.
Answer:
A) high; quick
Explanation:
The information in the sentence above provides that the businesses and that the workers are sensitive to the change in any kind of money supply or inflation.
This means both very quickly respond to anything like that and will change accordingly.
Therefore, the inflation rate when is high, then the companies and workers are really quick to create any policy.
Answer: C
Explanation:
A business is any activity that provides goods or services to consumers for the purpose of making a profit.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
At the beginning of the year, Rose Sporting Goods had $18,000 in inventory.
Purchases= $66,000.
Ending inventory cost= $28,500.
A) The cost of goods available for sale is the sum of beginning inventory and the purchases.
Cost of goods available for sale= 18,000 + 66,000= $84,000
B) COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 84,000 - 28,500= $55,500
C) The ending inventory is the amount of goods that weren't sold:
Ending inventory= $28,500
