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3 years ago

In a period of rising prices, the inventory method which tends to give the highest reported net income is:

Business

1 answer:

Blizzard [7]3 years ago

7 0

Answer:

b. first-in, first-out.

Explanation:

Generally, there are three methods for estimating the inventory shown below:

1. First-in-first, the company is selling the old products in this way than the new ones, which means first selling the old products and then selling the new ones

2. Weighted average method: Weighted cost is measured by considering the total revenue and total purchase

3. Last-in-first-out: Contrary to the first-in-first-out process, the first sale of new goods, then selling of old goods.

4. Base stock: The process by which the orders of the consumer are fulfilled by holding the less inventory

In the FIFO method, the highest ended inventory results in the lower cost of goods sold at the highest net profits.

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The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate

Bezzdna [24]

Answer:

Option B is the correct answer,1.05

Explanation:

Present value index can be computed using the below formula:

present value index=present value of cash inflows/initial amount invested

present value of cash inflows=annual net cash flow*present value factor of annuity

annual net cash flow=$93,750

present value factor of annuity=4.212

present value of cash inflows=$93,750*4.212=$394,875.00

initial amount invested is $375,000

present value index=$394,875.00/$375,000 =1.053

The present value index of this project is approximately 1.05,which is the option B in the multiple choices

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3 years ago

Click to watch the Tell Me More Learning Objective 3 video and then answer the questions below. 1. On April 4, a $2,000 account

AleksandrR [38]

Answer:

The correct answer is debit to Bad Debt Expense.

Explanation:

Taking into account the nature of both accounts, the registration of an account receivable is considered an asset taking into account that it is a callable value for the sale of products or services on credit, for which reason it is recorded in the debit to increase the company rights. In the exposed case, where the debt is considered uncollectible after exhausting many resources, the record is to recognize an expense (debit nature), against a credit to the account receivable with the objective of recognizing in the accounting the loss in the expense and the cancellation of the right in the asset.

4 0

3 years ago

In December, a company signed a contract with a regular customer to sell products for $100,000. In January, the company received

REY [17]

Answer: In January, when the products are delivered.

6 0

1 year ago

In Angola in 2004, GNI is much less than GDP. Angola is an oil-exporting country. What is a plausible relationship between these

asambeis [7]

Answer:

The GDP includes the value of all the final goods and services produced in a country, while the GNI includes the value of all the final goods and services produced by the citizens of a country, regardless of where they are located.

Angola's GDP is higher than its GNI because many foreign companies must produce oil, and that increases GDP but is not included in the GNI).

4 0

3 years ago

Exercise 10-6 Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial cleaning compound

ololo11 [35]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Standard:

Direct materials 7.30 pounds $ 2.25 per pound $16.43

Actual:

16,600 pounds of material was purchased for $2.05 per pound. All of the material purchased was used to produce 2,000 units of Zoom.

To calculate the direct material price and quantity variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2.25 - 2.05)*16,600

Direct material price variance= $3,320 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 2,000*7.3= 14,600

Direct material quantity variance= (14,600 - 16,600)*2.25

Direct material quantity variance= $4,500 unfavorable

4 0

3 years ago