The cost of ending inventory and the cost of goods sold under each of the following methods: Under the LIFO method, Sales Less: Cost of Goods sold Gross Profit less: Selling, admin, depreciation Income before.
Final in, first out (LIFO) is a technique used to account for inventory. beneath LIFO, the expenses of the maximum recent products bought (or produced) are the primary ones to be expensed. LIFO is used most effectively inside the USA and governed via the commonly ordinary accounting standards (GAAP).
The LIFO method is used within the COGS (value of products sold) calculation while the fees of manufacturing a product or obtaining inventory have been growing. this will be because of inflation.
The ultimate-In, First-Out (LIFO) method assumes that the last unit to arrive in stock or greater latest is offered first. the first-In, First-Out (FIFO) approach assumes that the oldest unit of inventory is sold first.LIFO effects decrease internet earnings because the price of products offered is better, so there may be a decrease in taxable profits.” decreased tax legal responsibility is a key reason some organizations decide on LIFO.
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Answer:
Estimated manufacturing overhead rate= $77 per direct labor hour
Explanation:
Giving the following information:
Production:
Product A: 1,850 units
Product B: 1,250
Hours required:
Product A: requires 0.3 direct labor-hours per unit
Product B: requires 0.6 direct labor-hours per unit.
The total estimated overhead for the next period is $100,485.
First, we need to calculate the total amount of direct labor hours required:
Total direct labor hours= 0.3*1,850 + 0.6*1,250= 1,305 hour
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 100,485/1,305= $77 per direct labor hour
Answer:
D) its revenue minus its cost of intermediate goods.
Explanation:
The firm value added shows a difference between the revenue and the cost of intermediate goods
In mathematically,
Firm value added = Revenue - cost of intermediate goods
After deducting the cost of intermediate goods from the revenue we can get the firm value added
Hence, the option D is correct as it denotes the firm value added
Answer:
False
Explanation:
With the advent of computers, the office work that involved typing a data and sending information to others, witnessed a great trend shift from typewriters and manual handing over to computers and emails.
Hence as the computers became popular, the typewriter went to the decline stage of product life cycle because there wasn’t much demand left for producing typewriters
It depends but variable costs are usually associated with unit production like ingredients or materials so fixed costs like capital expenditure might be the larger part of a budget
