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3 years ago

the inventory method that will always produce the same amount for the cost of goods sold in a periodic invenotry system as

Business

1 answer:

liraira [26]3 years ago

4 0

Answer:

FIFO.

Explanation:

Note: This question is not complete. The complete question is therefore given before answering the question as follows:

The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be:

FIFO.

LIFO.

Weighted average.

None of these answer choices is correct.

The explanation to the answer is now given as follows:

First-in, first-out (FIFO) is an inventory method under which the oldest inventory items are recorded in the account as being issued or sold first.

A periodic inventory system refers to an inventory valuation method under which there is an update to the inventory account at the end of an accounting period instead of after every sale and purchase of inventory items.

A perpetual inventory system to an inventory valuation method under which there is an update to the inventory account after every sale and purchase of inventory items. This is done by using computer softwares such as computerized point-of-sale systems and enterprise asset management software.

When FIFO inventory method is being used, both the periodic inventory system and perpetual inventory system will always produce the same amount for cost of goods sold.

Based this explanation, the correct option for this question is FIFO.

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Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

seropon [69]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 40,000 units of product were as follows:

Standard Costs - Actual Costs

Direct materials 120,000 lb. at $3.20 118,500 lb. at $3.25

Direct labor 12,000 hrs. at $24.40 11,700 hrs. at $25.00

Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 15,000 direct labor hrs.:

Variable cost, $8.00 $91,200 variable cost

Fixed cost, $10.00 $150,000 fixed cost

Each unit requires 0.3 hour of direct labor.

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

Direct material price variance= (3.20 - 3.25)*118,500= $5925 unfavorable

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

Direct material quantity variance= (120,000 - 118,500)*3.20=-$4,800 favorable

Total direct material variance= 5,925 - 4,800= 1,125 unfavorable

B)Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (12,000 - 11,700)*24.40= -$7,320 favorable

Direct labor price variance= (SR - AR)*AQ

Direct labor price variance= (24.40 - 25)*11,700= $7,020 unfavorable

Total direct labor variance= $300 favorable

C) Variable factory overhead controllable variance= (8*15,000 - 92,100)= -$27,900 favorable

Fixed factory overhead volume variance= (10*15,000 - 150,000)= 0

Total factory overhead variance= 27,900 favorable

3 0

3 years ago

A simple scoring model is used to decide among three projects that we'll call A, B, and C. The total score for project A is 30,

Flauer [41]

Answer: D) Project A is better than project B for this company at this point in time.

Explanation:

Option D is the best option because we do not know that the basis for the scoring model directly translates to earnings. The scoring of Project A at 30 does not necessarily mean that it's expected to earn those amounts of revenue and therefore triple that of Project C. We do not know because the information is not complete.

What we do know is that A has the highest score out of all projects and this is why it is better to do Project A as opposed to Project B.

4 0

2 years ago

At December 31, 2019, Skysong Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,966

Fittoniya [83]

Answer:

Earnings per share from continuing operations is $3.41 per share.

Earnings per share from discontinued operations is -$0.53 per share.

Explanation:

The earnings per share data can be computed by preparing a partial income statment as follows:

Skysong Corporation

Income Statement (Partial)

As at December 31, 2019

Particulars Amount ($)

Continuing operations

Income from continuing operations before taxes 22,887,900

Taxes on continuing operations (22,887,900 * 35%) (8,010,765)

Income from continuing operations after taxes 14,877,135

Preferred dividends declared (1,089,660)

Income from continuing operations after pref. div. 13,787,475

Discontinued operations

Discontinued operations (loss before taxes) (3,284,900)

Tax benefit on discontinued oper. (3,284,900 * 35%) 1,149,715

Discontinued operations (loss after taxes) (2,135,185)

Earnings per share:

Continuing operations (13,787,475 / 4,044,060) 3.41

Discontinued operations (2,135,185 / 4,044,060) (0.53)

5 0

2 years ago

Georgina decides to take a dozen cupcakes to school to sell so she can raise money for her school trip to New Orleans. She price

Naily [24]

Answer:

Shortage

Explanation:

I got it correct because I watched the given recording.

8 0

2 years ago

Which of the following is an arbitrage opportunity?

FromTheMoon [43]

Answer:

D. The bank offers you a loan at 4% interest and a savings account that pays 5% interest.

Explanation:

Arbitration is a financial strategy that consists of the price difference between different markets on the same financial asset to obtain an economic benefit, usually without risk.

To perform arbitration, complementary operations (buy and sell) are carried out at the same time and wait for prices to adjust. The arbitration takes advantage of this divergence and obtains a risk-free gain. In other words, the arbitrajista is positioned short (sells) in the market with higher price and long (purchase) in the market with lower price. The benefit would come from the difference between the two markets.

7 0

3 years ago