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siniylev [52]
2 years ago
8

Assuming purchase costs are declining and a periodic inventory system is used, determine the statements below which correctly de

scribe what is happening to cost of goods sold under FIFO, LIFO and weighted average cost flow methods.
a. In a situation where prices are declining, companies using LIFO will report the smallest cost of goods sold.b. Companies using FIFO will report the smallest cost of goods sold (compared to companies using LIFO or weighted average.)c. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.d. Companies using LIFO will pay higher taxes than companies using FIFO, assuming all else being equal.e. Companies using FIFO will report the highest gross profit and net income.f. Companies using LIFO will report the highest ending inventory on their balance sheets (as compared to companies using FIFO or weighted average,)
Business
1 answer:
Gnesinka [82]2 years ago
8 0

Answer:

A. In a situation where prices are declining, companies using LIFO will report the smallest cost of goods sold.

- This is because LIFO calculates goods sold as Last in, First Out. And since the cost is declining, the last in inventory will have the smallest cost of goods sold.

C. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.

- Whether the cost of goods are rising or falling, this will always be the case.

D. Companies using LIFO will pay higher taxes than companies using FIFO, assuming all else being equal.

- This is because when using LIFO in this scenario, higher profits would be recorded and the tax is paid on profit, thus higher taxes.

F. Companies using LIFO will report the highest ending inventory on their balance sheets (as compared to companies using FIFO or weighted average,)

- This is simply because in this scenario, the LIFO sold the cheaper goods first leaving an ending inventory of the relatively expensive goods unlike FIFO which would have sold the expensive first. Again, emphasis on this scenario of declining cost.

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The ________ process lays the groundwork for the project by clarifying the value it will bring to the organization, setting its
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Answer:

initiating process

Explanation:

Initiating process -

It is the very first step , before beginning any project or task , is referred to as the initiating process .

The process require the proper estimation of the steps need to be taken to complete the project on time , all the steps are considered and allotted in order all the employees are clear about the task they need to perform ,

The amount , goals and duration of the project is calculated in this very step .

Hence , from the given information of the question, '

The correct term is initiating process .

5 0
3 years ago
Healthy Snacks has a target capital structure of 60 percent common stock, 3 percent preferred stock, and 37 percent debt. Its co
Ivenika [448]

Answer:

WACC = 12.45%

Explanation:

WACC= cost of equity * weight + cost of pref. equity * weight + cost of debt * weight * (1 - T)

WACC = 0.6 * 16.8 + 0,03 * 11.4 + 0,37 * 8.3 * (1 - 0,34)

WACC is the weighted average of the costs of the company, so it is necessary to multiply the weight of each source of capital (equity, preferred equity and debt) for its corresponding cost. Debt has a partiuclarity and is that it is before taxes so it becomes a tax shield for the company and taxes in fact reduce the cost of debt, for that reason we also multiply the cost of debt by  (1 - T)

5 0
3 years ago
A person running for political office is called a ____.
laila [671]

Answer:

Candidate

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6 0
3 years ago
Read 2 more answers
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale
Vilka [71]

The Journal Entries to record the transactions for Wainwright Corporation in the month of March 2021 are as follows:

Journal Entries:

a. Debit Cash $600,000

Credit Common Stock $600,000

To record issuance of 60,000 shares of non-par common stock for cash.

b. Debit Equipment $100,000

Credit Cash $25,000

Credit Notes Payable $75,000

To record the purchase of equipment.

c. Debit Inventory $182,000

Credit Accounts Payable $182,000

To record the purchase of inventory on account.

d. Debit Accounts Receivable $270,000

Credit Sales Revenue $270,000

To record the credit sales for the month.

d. Debit Cost of Goods Sold $162,000

Credit Inventory $162,000

To record the cost of goods sold.

e. Debit Rent Expense $8,000

Credit Cash $8,000

To record the payment of rent on the warehouse building.

f. Debit Prepaid Insurance $8,050

Credit Cash $8,050

To record the prepayment of insurance for one year, from April 1, 2021.

g. Debit Accounts Payable $162,000

Credit Cash $162,000

To record payment on account.

h. Debit Cash $121,500

Credit Accounts Receivable $121,500

To record receipt of cash on account.

i. Debit Depreciation Expense $2,500

Credit Accumulated Depreciation $2,500

To record depreciation expense for the month.

Data Analysis:

a. Cash $600,000 Common Stock $600,000

b. Equipment $100,000 Cash $25,000 Notes Payable $75,000

c. Inventory $182,000 Accounts Payable $182,000

d. Accounts Receivable $270,000 Sales Revenue $270,000

d. Cost of Goods Sold $162,000 Inventory $162,000

e. Rent Expense $8,000 Cash $8,000

f. Prepaid Insurance $8,050 Cash $8,050

g. Accounts Payable $162,000 Cash $162,000

h. Cash $121,500 Accounts Receivable $121,500

i. Depreciation Expense $2,500 Accumulated Depreciation $2,500

Read more about recording journal entries at brainly.com/question/17201601

4 0
2 years ago
When the price of Milk is $5 per gallon consumers demand 1,000 boxes of Boo Berry Cereal. When the price of milk increases to $5
alexandr1967 [171]

Answer: a. 10%

b. -30%

Explanation:

a. What is the percentage change in the price of milk?

Old price = $5.00

New price = $5.50

Percentage change = ($5.50 - $5.00)/$5.00 × 100

= 0.50/5.00 × 100

= 1/10 × 100

= 10%

Percentage change on price = 10%

b. What is the percentage change in the quantity demanded for Boo Berry Cereal?

Old quantity = 1000

New quantity = 700

Percentage change = (700 - 1000)/1000 × 100

= -300/1000 × 100

= -30%

The percentage change in the quantity demanded for Boo Berry Cereal is -30%.

6 0
2 years ago
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