Answer:
I guess c or d not sure about it.
Answer:
$7,247.05
Explanation:
The computation of the inventory level is shown below:
But before that first we have to find out the fixed cost per unit which is
= Total fixed manufacturing overhead ÷ production units
= $59,160 ÷ 11,600 units
= $5.1 per unit
Now the inventory level is by taking the difference of net operating income between two methods
= ($127,960 - $91,000) ÷ ($5.1 per unit)
= $7,247.05
Therefore, the inventory is increased by $7,247.05
Answer:
The proper IFRS presentation is:
d. Listing current assets before noncurrent assets, and listing Current Liabilities before Retained Earnings
Explanation:
The above listing is in the order of liquidity, especially of current assets and noncurrent assets. This listing shows all the current assets before the noncurrent assets with Cash, Accounts Receivable, etc following that order for the listing of current assets. And the more permanent assets are listed last. Similarly, for the Liabilities and Equity side, the Current Liabilities are listed first before the Noncurrent Liabilities followed by Equity (Share Capital and Retained Earnings) in that order.
Answer:
D. All of the above are correct.
Explanation:
Carry Cost : This is the total cost incurred by an entity for taking ownership and storing inventory items, some of these costs are rent of warehouse, inventory insurance, salary of warehouse staff e.t.c.
Stock-out Costs : The is the lost of income and all the expenses associated with the inability to meet customers' orders due to shortage in inventory.
Quality Costs : This is cost incurred by a firm for ensuring that product conforms to established quality standard as well as cost incurred in investigating and correcting substandard products produced.
Shrinkage Costs :
This is the monetary value of the inventory items lost as a result of sharp practices or poor storage environment.
Purchasing Costs : This is the actual cost incurred in buying inventory and bringing it to its present location less any sales discount.
Ordering Costs : This is the entire cost incurred in processing and placing order for inventory.
We can see that all of the above are important in managing goods for sale in a retail company.
Answer:
The answer your looking for is option A - Process costing would be appropriate for a jeweler who makes custom jewelry to order.
