The cost of goods sold for the year is $500.
Since FIFO method is to be used, the cost of goods sold for the year should be the cost of its first purchase regardless of when the product is actually bought. Thus, the cost of goods sold for the year is $500 ($500 × 1).
Answer:
Monopolistic competition is a type of competition that occurs in a competitive market without identical producers.
Explanation:
Answer:
To say that people respond to incentives is to say that:
changes in benefits or changes in costs influence people's decisions and their behavior.
Explanation:
Incentives are the rewards (benefits) or punishments (costs) that shape people's choices and decisions. Changes in incentives, whether monetary or non-monetary, drive people's decisions and behavior. When opportunity costs change, incentives change, and people's choices and behavior also change. The changes that cause people to change their behavior as a result of changes in incentives can be described in predictable ways.
Answer:
$459
Explanation:
Computation of the given data are as follows:
Tax rate = 30%
Income before taxes (FIFO method) = $21,330
So, tax amount = $21,330 × 30%
= $6,399
Income before taxes (LIFO method) = $19,800
So, tax amount = $19,800 × 30%
= $5,940
So, we can calculate the difference in taxes by using following formula:
Difference in Tax = $6,399 - $5,940
= $459
