That's a statement.
If its T/F, That is true <span />
<em>Answer</em>:
<u>$52,000</u>
Explanation:
Remember, the FIFO inventory costing method records the inventory value based on the cost of the earliest (first) purchased or in hand balance.
The effective tax rate would usually be applied after the sales, however using FIFO we assume the first value of the inventory prior to the tax deduction.
= 4000 x $13
= $52,000
Therefore, the gross profit for the period is $52,000.
If the question is trying to ask whether it is true or false, the answer is false. It is because whatever you chose or the decisions you make, there is always a cause, or things affecting your decision in which you will be held accountable for such as the statement above implies, you are accountable of resources and such when you choose.
Answer:
Lower by $8,250
Explanation:
The operating income reported will be different as the unit level of inventory increased during the account period
.
Denominator rate:
= Fixed manufacturing costs ÷ Budgeted denominator level
= 18,000 ÷ 2,400
= 7.5
Operative income:
= Total Units produced - (Total units sold × Denominator rate)
= 2,700 - (1,600 × 7.5
)
= 1,100 × 7.5
= $8,250
Lower by $8,250 under the variable costing because 8250 of fixed manufacturing cost remain in inventory under absorption.
