Answer:
it's most likely B or D. but you need to double check
Answer: A.exceed units sold
Explanation:
In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.
Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.
This difference in consideration of costs under each method leads to difference in income determination under each method.
Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.
This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.
Answer:
Finished goods inventory final balance= 12, 495
Explanation:
PRODUCTION COST COMPONENTS
- Direct materials 12,385
- Direct work 10,600
- Lease and utilities 9,600
TOTAL PRODUCTION COST = 32,585
TOTAL UNITS PRODUCED = 6,650
UNIT COST= (Total Production Cost / Total Units Produced) = 32,585 / 6,650 = 4.9
FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 6,650 – 4,100 = 2,250
FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,250 * 4.9 = 12,495
Answer:
Explanation:
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Answer:
d.
Explanation:
Based on the information provided within the question it can be said that the correct steps that are used by the FASB in developing GAAP (generally accepted accounting principles) would be the following: issuing a discussion memorandum, issuing an exposure draft, and issuing a statement of principle. This collection of accounting rules was then adopted by the U.S. Securities and Exchange Commission.
