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4 years ago

Understanding the Relationship between Cost Flows, Inventories, and Cost of Goods Sold

Business

1 answer:

Elanso [62]4 years ago

7 0

Answer:

KINDLY CHECK explanation

Explanation:

From the Given information above :

The direct material used in production for year 1:

(Direct material:beginning inventory + direct material purchases - direct material:ending inventory) = $(10,000 + 45,000 - 15,000) = $40,000

2.)Direct labor used in production year 1:

(COGS - beginning finished goods + ending finished goods - direct materials used in production - manufacturing overhead - beginning WIP + Ending WIP)

$(169,000 - 8000 + 7000 - 40000 - 80000 - 17000 + 14000) = $45,000

Direct material : beginning inventory Year 2 = Direct material : ending inventory Year 1 = $15,000

Direct material purchases :

Direct materialnused in production + direct material : ending inventory - direct material : beginning inventory

= 50,000 + 17000 - 15000 = $52,000

COGS Year 2 :

(COGS - beginning finished goods + ending finished goods - direct materials used in production - manufacturing overhead - beginning WIP + Ending WIP) = direct labor used in production

COGS - 7000 + 11000 - 50,000 - 76000 - 14000 + 19000 = 53000

COGS - 117000 = 53000

COGS = 53000 + 117000 = $170000

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Feedback is important in improving your performance, and we should solicit feedback, and not just wait until someone provides us

Serhud [2]

Answer:

The given statement is "True".

Explanation:

Feedback would be a significant aspect in improving the accomplishment or organization's success.
Requesting or waiting for such feedback might contribute to less and less input, although the organization must request for input, this same person might communicate with the organization by requesting comments.

Thus the above is the correct answer.

8 0

3 years ago

In its first month of operations, Culver Company made three purchases of merchandise in the following sequence: (1) 205 units at

Oksi-84 [34.3K]

Answer:

$2,450 ; $1,430

Explanation:

The computation of the ending inventory using the periodic inventory system is shown below:

Under FIFO method

= 245 units × $10

= $2,450

We take the last units in this FIFO method

Under the LIFO method

= 205 units × $6 + 40 units × $5

= $1,230 + $200

= $1,430

We take the first units in this LIFO method

Hence, the closing inventory is come

3 0

3 years ago

Soap Company manufactures soap X and soap Y and can sell all it can make of either. Hours available to produce the products are

Nastasia [14]

Answer:

It would take 162 minutes to make one unit of product X.

Explanation:

Giving the following information:

Hours available to produce the products are the constrained resources.

Soap could reduce the processing time for X by 10 percent.

X Y

Sales Price $20 $25

Variable Cost 14 15

Hours needed to process 3 5

<u>First, we need to determine the number of minutes required to make one unit of Product X under the new method:</u>

Number of minutes required= (3*60)*0.9= 162 minutes.

It would take 162 minutes to make one unit of product X.

B) False. The contribution margin per hour of Product B is higher than product Y.

C) False. The contribution margin per hour of $2 was before the improvement in product X.

D) False. Product Y has a higher contribution margin per unit but lower compared to the contribution margin per hour.

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3 years ago

The essential difference between a command economy and a market economy is that in a market economy

damaskus [11]

Answer:

b buyers and sellers determine resource allocation.

Explanation:

The market is regulated by the interaction between Sellers and Buyers. However, in a Command economy the market is regulated by the government policies.

4 0

3 years ago

XYZ Law Firm provided services for a cllent for $5,000 cash and provided service for another for $10,000 that will pay for the s

Norma-Jean [14]

Answer: The income statement should reflect $15,000.

Explanation: The reason is because accounting procedures are always guided by certain principles or concepts. One of such concepts is the Realization Concept. This simply states that income is considered to have been earned when the goods/services have been dispatched /rendered to the client and the client has incurred liability for such (or has accepted his/her indebtedness). The Accrual Concept is also applicable in the above instance because this concept/principle states that revenues and expenses are recognized as soon as they are earned and incurred and not when money is expended or received. So basically, XYZ Law firm has provided services for two clients. One of them has paid while the other will pay sometime later. Both of them are already recognized as revenue and the current income statement will reflect revenue transactions to the tune of $15,000.

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3 years ago