Answer:
b. greater under absorption costing than variable costing.
Explanation:
The question is to calculate the closing value of inventory and based on the choices, we need to calculate based on both the Absorption Costing and the Variable Costing Methods.
1. Closing Inventory based on Variable Costing Method
Direct Material $40
Direct Labour $30
Variable Overhead $2
Fixed Overhead <u>$0 </u>(this method does not reecognise fixed cost
Totals (Unit cost of Production) $72
Based on this, the closing inventory is $72 x (8,000+50,000-55,000 units)
=$77 x 3,000= $216,000
2. Closing Inventory based on Absorption Costing Method
Direct Material $40
Direct Labour $30
Variable Overhead $2
Fixed Overhead <u>$5</u>
Totals (Unit cost of Production) $77
Based on this, the closing inventory is $77 x (8,000+50,000-55,000 units)
=$77 x 3,000= $231,000
Based on these calculations:
The Ending Inventory is higher/Greater under absorption costing than variable costing and the reason is that variable costing does not recognize fixed cost in determining the value of ending inventory.
Answer:
Be smart and watch out for snakes
Answer:
gold is denser than any other mineral
Explanation:
a placer deposit is an accumulation of valuable minerals formed by gravity separation from a specific source rock during sedimentary process .
minerals that form a placer deposit have high specific gravity and are chemical resistant and weathering. these minerals include gold, platinum, chromium, native copper, zircon, monazite, cassiterite, magnetite, ilmenite, and various gemstones.
Answer:
$254,000
Explanation:
First and foremost,the cash of $9,200 collected in respect of debt already written off as uncollectible would not affect the balance in accounts receivable since the debt would reinstated and also taken out of accounts receivable simultaneously.
The change in accounts is the difference between the sales on account of $596,000 and collections in respect of accounts receivable of $342,000
change in accounts receivable=$596,000-$342,000=$254,000
Answer:
$0.25
Explanation:
The cost of 1200 leaflets is $250 plus 20% VAT
the VAT charges is
=20% of $250
=20/100 x 250
=0.2 x 250
=$50
The total cost of 1200 leaflets
= $250 + $50
=$300
1200 leaflets cost , $300
one leaflet will cost
=$300/$1200
=$0.25
