Answer:
COGS= $5,910
Explanation:
Giving the following information:
Beginning inventory= 90 units at $19
Purchases 315 units at $20
Purchases 45 units at $22
Ending inventory= 150 units
First, we need to determine the number of units sold:
Units sold= 450 - 150= 300 units
Under the FIFO (first-in, first-out) method, the cost of goods sold is calculated using the cost of the first units incorporated:
COGS= 90*19 + 210*20= $5,910
Answer:
b. False
Explanation:
LIFO stand for Last in First Out. This means LIFO inventory valuation is based on earlier goods purchased.
So, when costs are decreasing, they are affecting latter prices and this usually affect FIFO (First in First Out) not LIFO.
Answer:
D. Flexible budgeting is the correct answer.
Explanation:
Flexible budgeting is the budget plan that changes as per the company's requirement.
The advantages Flexible budgeting are:
- It assists the management of the organization to decide about the business situation and production level.
- It helps to know the amount of product to be required for the growth of the organization and to achieve the profit level.
