A analytical and b interpersonal
Answer:
d. $487,750
Explanation:
Cost of goods manufactured
<em>Consider only the manufacturing costs</em>
Cost of goods manufactured = $145,000 + $200,000 + $ 170,000 + ($5.75 x 25,000) - $171,000
= $487,750
Note : Only overheads applied $143,750 ($5.75 x 25,000) are added to cost of goods manufactured instead of actual overheads.
Conclusion
the amount of cost of goods manufactured is $487,750
FIFO stands for First In First Out and LIFO stands for Last In First Out.
Answer: LIFO produces more favorable cash flow because LIFO PRODUCES LOWER INCOME TAX EXPENSE.
During inflation, LIFO approach is adopted for tax benefits. With the rise in prices, LIFO produces higher cost of sold amounts of goods.
The correct answer is a/true because I go to the bank
The best answer for this question would be A. :)
