Investor demand for the Stock and Coumpound interest
Answer:
A. Debiting Cost of Goods Sold $7,000
Explanation:
The LIFO is a method used to account value for inventory. Under the method, the last item of inventory purchased is the first one sold.
At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, but a physical inventory taken at year-end indicates only 50 units of this product actually are on hand. So 10 units of the product was shrinkage.
The company should debit Cost of Goods Sold to record this inventory shrinkage.
Anderson Co. use LIFO method, the amount shrinkage product:
10 x $700 = $7,000
Find common denominators. What you do to the denominator, you do to the numerator.
(2/5)(7/7) = 14/35
(3/7)(5/5) = 15/35
14/35 - 15/35 = -1/35
If you meant to put addition, then your answer will be D) 29/35.
14/35 + 15/35 = 29/35
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Answer:
B. Because of the changes in production levels, under variable costing the unit product cost will change each year
Explanation:
In variable costing, Product Cost is the total of variable manufacturing costs only. Whereas in Absorption costing, the Product cost is the total of both variable and fixed manufacturing overheads.
The following statements is not correct : Because of the changes in production levels, under variable costing the unit product cost will change each year.
