Answer:
TRUE
Explanation:
The gross profit is the difference betwenethe sales revenue and the cost of good sold/manufactured
for retail companys they determinate the cost using a given inventory method like FIFO LIFO or weighted average.
Manufacturing companies will subtract from the sales revenue the cost of good manufactured which can be determinated in various ways like process, order, absorption or ABC
Answer:
Technologically wise poeple
I have a zeal for learning coding
Answer:
D $88410
Explanation:
Work in progress includes all the raw materials, direct labour and conversion costs incurred so far excluding cost of goods sold .
WIP= Intial WIP +Manufacturing costs incurred- Cost of goods sold.
The WIP inventory at the begining of the period is given as nil.
WIP during the period = (95000*80%)+56000+13600+107000
=252600(but it was given that 65% of the Process was completedi.e., finished goodswhich are not the part of the WIP inventory ; hence the remaining 35% is the Work in process inventory)
=$ 88410.
Further the remaining raw material 20% = 95000*20% shall not comprise a part of the WIP as it has not been brought into process itself , it shall lie in raw materials inventory itself.It shall be counted into the WIP once it is brought into the manufacturing assembly line.
