The beginning inventory and ending inventory for the year ended December 31, 2017, if Wolverine had used FIFO instead of LIFO, would have been <u>$88.6 million</u> and <u>$69.4 million</u>, respectively.
<h3>What is the difference between the FIFO and LIFO methods?</h3>
The FIFO (First-in, First-Out) Method assumes that inventories sold are the first to be bought or produced.
It is unlike LIFO (Last-in- First-Out), which assumes that inventories sold are the last bought or produced.
<h3>Data and Calculations:</h3>
LIFO Method FIFO Method
Ending inventory:
December 30, 2017 $53.2 million $69.4 million ($53.2 + $16.4)
December 30, 2016 $66.2 million $88.6 million ($66.2 + $22.4)
Thus, the beginning inventory and ending inventory for the year ended December 31, 2017, if Wolverine had used FIFO instead of LIFO, would have been <u>$88.6 million</u> and <u>$69.4 million</u>, respectively.
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Answer:
$900
Explanation:
The computation of the amount of the overhead allocated is shown below:
But before that the predetermined overhead rate is
As we know that
Predetermine overhead rate is
= Estimated manufacturing overhead ÷ estimated direct labor hours
= $450,000 ÷ $150,000
= $3
Now the overhead allocated is
= 300 direct labor hours × $3
= $900
Answer:
To maximize revenue based on current capacity, The Stadium Manager should set Premium Price for tickets.
Explanation:
If your aim is to maximize revenue based on the capacity of the stadium, Premium Price is your surest best.
Premium pricing is a type of pricing which involves establishing a price higher than your competitors to achieve a premium positioning.
You will attract the right kind of customers and when you set a premium price, you have raised the bar of expectation from your customers.
This will push the stadium to upgrade their customer service, their operations and delivery.
If this method is carried out properly by establishing club memberships and other marketing incentives, you will retain these premium customers and maximize revenue.
Answer:
depreciation expense 6,375 debit
accumulate depreciation printer 6,375 credit
Explanation:
To calculate the depreciation we will follow this steps:
1.- Calculate the amount subject to depreciation
purchase 59,000
salvage (8,000)
depreciable amount 51,000
2.- We calculate the striaght-line depreciation
depreciable amount / useful life
51,000/4 = 12,750
Now this amount is for a complete year. The printer enter the accounting on June 30th so at December 31th we have half-year
12,750 --> complete year
12,750/2 --> half year = 6,375
3.- we do the entry:
we recognize the depreication expense
and increase the accumulated depreciation on the printer
Answer:
see below
Explanation:
Financial statements are formal records that provide information about the business's financial activities, status, condition, and position.
Limitation of Financial Statements
1. Statements are based on historical data.
Financial statements do not indicate the current worth of a company. The value of assets and liabilities are subject to change, but financial statements record them at cost. The value of assets and liabilities is not altered to reflect the market cost. Therefore, the balance sheet presents misleading reports if a large part is based on historical costs.
2. Statements are subject to personal judgment:
The values of assets, as presented in the balance sheet, are influenced by the opinions of the person preparing them. For example, depreciation and amortization of assets depend on the personal judgment of the accountant.
3. Inflationary effects
Financial statements do not consider the effects of inflation. The reports and the statements' values are not the real values as inflation is known to erode a currency's strength.
4. Statements do not record Intangible assets.
Not recording intangible assets such as intellectual properties underestimate the value of a business.