An advantage of FIFO is that it assigns the most recent costs of goods sold, does...
An advantage of FIFO is that it assigns the most recent costs of goods sold, does a better job matching current costs with revenues on the income statement.
Homework Answers
In FIFO (first in first out) the goods which are purchased first are sold first. The goods sold will be out of opening stock and first purchases. The goods left in the ending inventory will be the goods purchased last. Therefore the cost of goods sold will not be at the current costs, it will be at old costs i.e at original costs at which goods are purchased
In FIFO method the amount of ending inventory will be at the current market value. No manipulation of income is possible under FIFO method. Flow of costs corresponds with the normal physical file of units.
Therefore it is not an advantage under FIFO method
Add Answer to:
An advantage of FIFO is that it assigns the most recent costs of
goods sold, does...
Which inventory costing method assigns to Cost of Goods Sold the most recent purchases incurred during...
Which inventory costing method assigns to Cost of Goods Sold the most recent purchases incurred during the period?
When is it acceptable to use the direct write-off method to account for uncollectible accounts? O...
When is it acceptable to use the direct write-off method to account for uncollectible accounts? O When the expected bad debts are not significant O When the company pledges its accounts receivables O When the expected bad debts are significant O It is never acceptable to use the direct write-off method under GAAP O When the company sells its accounts receivables The advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and better...
Explain 1.) How does the Matching Principle relate to the Costs of Goods Sold ? 2.)...
Explain 1.) How does the Matching Principle relate to the Costs of Goods Sold ? 2.) Manufacturing companies can choose from several methods of valuing its inventory such as normal cost, weighted average and FIFO. This is true financial reporting. However, for taxes purposes, they may also elect the LIFO method. Why/when do you think choosing LIFO would be an advantage on their tax return? 3.) When creating a budget, when would one likely to choose doing quarterly budgets (adjusting...
FIFO tends to increase cost of goods sold when: O A. costs are declining O B....
FIFO tends to increase cost of goods sold when: O A. costs are declining O B. costs are constant O C. costs are increasing OD. FIFO will always yield the lowest possible cost of goods sold If ending inventory on December 31, 2016, is overstated, then O A. gross margin for the year ended December 31, 2016, will be understated OB. cost of goods sold for the year ended December 31, 2016, will be overstated O c. gross margin for...
In a period of steadily rising prices (meaning the cost to purchase inventory is increasing over time), what would be th...
In a period of steadily rising prices (meaning the cost to purchase inventory is increasing over time), what would be the implications of choosing FIFO vs. LIFO? Which method would show a higher net income, and which would show a lower net income? Which method does a better job of matching expenses and revenues? Which method reflects the most recent costs of inventory on the balance sheet? What implications might this have that would be relevant for users of the...
Compute the cost of the ending inventory and the cost of goods sold under FIFO and...
Compute the cost of the ending inventory and the cost of goods sold under FIFO and average-cost. (Round av e.g. NT$45.) FIFO Average cost The cost of the ending inventory NT$U 606,402 NT$1 584,748 The cost of goods sold NT$ 1,732,594 NT$ 1,754,244 Which cost flow method would result in the higher net income? FIFO method would result in the higher net income. SHOW SOLUTION LINK TO TEXT (c) Your answer is correct. Which cost flow method would result yn...
1. FIFO tends to increase cost of goods sold when: A. costs are constant B. costs...
1. FIFO tends to increase cost of goods sold when: A. costs are constant B. costs are declining C. costs are increasing D. FIFO will always yield the lowest possible cost of goods sold 2. Which of the following would be included in the Inventory account on a merchandising company's balance sheet? A. shipping costs from the manufacturer to the merchandising company B. sales commissions C. delivery costs D. advertising costs 3. If ending inventory on December 31, 2016, is...
Costs are transferred from the balance sheet to the income statement as cost of goods sold...
Costs are transferred from the balance sheet to the income statement as cost of goods sold when A. direct materials, direct labor and manufacturing overhead are transferred to the beginning Work-in-Process Inventory account. B. the total of Cost of Goods Manufactured is determined. C. goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account. D. finished goods are sold. Which of the following companies is most likely to use process costing? A. a music studio B....
Prepare the income statement for Strike Gold Company for the most recent year. Use the calculation...
Prepare the income statement for Strike Gold Company for the most recent year. Use the calculation of cost of goods sold, cost of goods manufactured, and the amounts below. Assume that the company sold 32,000 units of its product at a price of $14 each during the year :: (Click the icon to view the amounts) (Click the icon to view the calculation of cost of goods manufactured.) (Click the icon to view the calculation of cost of goods sold.)...
prepare the income statement for east aquatic company for the most recent year. use the calculation...
prepare the income statement for east aquatic company for the most
recent year. use the calculation of cost of goods sold, cost of
goods manufactured, and the amount below. Assume that the company
sold 30,000 units for its product at a price of $11 each during the
year.
DATA:
------------------------------------------
^^ what i did so far .. please use same format because i am
confused
Raw materials inventory Work in process inventory Finished goods inventory Purchases of direct materials Direct...
When is it acceptable to use the direct write-off method to account for uncollectible accounts? O When the expected bad debts are not significant O When the company pledges its accounts receivables O When the expected bad debts are significant O It is never acceptable to use the direct write-off method under GAAP O When the company sells its accounts receivables The advantage of FIFO is that it assigns the most recent costs to cost of goods sold, and better...
FIFO tends to increase cost of goods sold when: O A. costs are declining O B. costs are constant O C. costs are increasing OD. FIFO will always yield the lowest possible cost of goods sold If ending inventory on December 31, 2016, is overstated, then O A. gross margin for the year ended December 31, 2016, will be understated OB. cost of goods sold for the year ended December 31, 2016, will be overstated O c. gross margin for...
Compute the cost of the ending inventory and the cost of goods sold under FIFO and average-cost. (Round av e.g. NT$45.) FIFO Average cost The cost of the ending inventory NT$U 606,402 NT$1 584,748 The cost of goods sold NT$ 1,732,594 NT$ 1,754,244 Which cost flow method would result in the higher net income? FIFO method would result in the higher net income. SHOW SOLUTION LINK TO TEXT (c) Your answer is correct. Which cost flow method would result yn...
Prepare the income statement for Strike Gold Company for the most recent year. Use the calculation of cost of goods sold, cost of goods manufactured, and the amounts below. Assume that the company sold 32,000 units of its product at a price of $14 each during the year :: (Click the icon to view the amounts) (Click the icon to view the calculation of cost of goods manufactured.) (Click the icon to view the calculation of cost of goods sold.)...
prepare the income statement for east aquatic company for the most
recent year. use the calculation of cost of goods sold, cost of
goods manufactured, and the amount below. Assume that the company
sold 30,000 units for its product at a price of $11 each during the
year.
DATA:
------------------------------------------
^^ what i did so far .. please use same format because i am
confused
Raw materials inventory Work in process inventory Finished goods inventory Purchases of direct materials Direct...
Most questions answered within 3 hours.
-
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 31 minutes ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 32 minutes ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 1 hour ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 1 hour ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 1 hour ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 1 hour ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 1 hour ago -
Please respond to this essay question in full essay form for
Chemistry 1102 Organic and Biochemistry:...
asked 1 hour ago -
Determine the head loss and velocity of flow in a water supply main
of 15.0 cm...
asked 1 hour ago -
A marketing executive who knowingly authorizes a shoddy
defective product to be brought to market is...
asked 1 hour ago -
Write a psudocode:
1. Define a function called authorize that takes in 2 strings,
uName, and...
asked 1 hour ago -
What Hall voltage (in mV) is produced by a 0.180 T field applied
across a 2.60...
asked 1 hour ago