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algol13
3 years ago
11

When LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the

point of each sale, rather than from the most recent purchases for the period.
True or False?
Business
1 answer:
bija089 [108]3 years ago
4 0

Answer:

False

Explanation:

The assertion is false that when LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the point of each sale, rather than from the most recent purchases for the period.

Under this method it is <u>at the end of the accounting year that the Inventory account is adjusted to equal the cost of the merchandise that is unsold.</u>

It is important to note that under LIFO periodic (not LIFO perpetual) <u>we wait until the entire year is over before assigning the costs. </u>Then we flow the year's last costs first, even if those goods arrived after the last sale of the year.

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____ pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit
kondaur [170]
Unit pricing can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of service. 
8 0
3 years ago
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Tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000 and Daisy's
dsp73

Answer:

Amount to be reported as cost of goods sold in the consolidated financial statement = $900,000

Explanation:

When a company holds 100% shares or more than 50% shares of another company that is common stock, they establish a holding subsidiary relationship in which equity method is to be followed.

As per equity method all the cost of goods sold by that of subsidiary is to be added to financial statements of holding while making consolidated financial statements.

In this if there are any sales or purchase between holding and subsidiary then such profit is not be added up till that inventory is further sold to third party.

In case the inventory is sold to third party then entire profit that is inclusive of holding to subsidiary is to be included as part of consolidated financial statements.

Therefore in the above case since Daisy has sold the inventory purchased from Tulip, entire cost of goods sold shall form part of consolidated financial statements.

Here amount to be reported as cost of goods sold in the consolidated financial statement = $600,000 + $400,000 = $1,000,000

Further the cost of goods sold is included 2 times, first in Tulip's account for $60,000 and then the same in Daisy's account for $100,000. In consolidated statement double amount should not be added, thus net cost of goods sold = $1,000,000 - $100,000 = $900,000

6 0
3 years ago
Bette's Breakfast, a perfectly competitive eatery, sells its "Breakfast Special" (the only item on the menu) for $5.00. The cost
Tamiku [17]

Answer:

Bette's Breakfast should increase the price or change the cost´s structure.

Explanation:

Bette's Breakfast should increase the price to get any profits because the total of the cost of serving that breakfast is higher than the price.  

Profit= price* sales -((Variable cost * sales) +Fixed cost)

Other option is changing the structure of cost per meal.

4 0
3 years ago
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Hernandez Builders has a gross payroll for January amounting to $500,000. The following amounts have been withheld: Income taxes
erik [133]

Answer:

The amount of net pay recorded by Hernandez is $380,650

Explanation:

Gross Pay                      $500,000

Income Tax                      $63,000

Social security              $31,000

Medicare                      $7,250

Charitable contribution      $5,000

Union Dues                      $10,000

Unemployement Tax      $3,100

Net Pay                              $380,650

Therefore, The amount of net pay recorded by Hernandez is $380,650

6 0
3 years ago
A utility‐maximizing consumer buys so as to make ________ for all pairs of goods.
Lady_Fox [76]
MUx / MUy = Px / Py is the right answer
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