Question

QUESTION 18 1. The Busy Baker Bakery (BBB) just began business and made the following four inventory purchases for a particular item in August: August 01: 150 units, Total Cost = $1,040 August 10: 200 units, Total Cost = $1,560 August 15: 200 units, Total Cost = $1,680 August 28: 150 units, Total Cost = $1,320 A physical count of merchandise inventory on August 31 reveals that there are 210 units on hand. Using the FIFO periodic inventory method, the item ending inventory valuation for August is closest to: $1,508 b$1,824 + $1,456 $1,848 19- A budget: a. promotes production automation. helps in identifying problems and uncertainties. Cis an aid to coordinating what needs to be done to execute a plan. is the qualitative expression of a proposed plan of action by management QUESTION 20 1. Comparing budgeted costs to actual costs helps managers to improve: a coordination. planning. Cimplementation. control.

Answer 1

Question 18.

Ans: b.$ 1,824

Working:

Particulars	Units	Unit Cost	Cost
Ending Inventory	150	$      8.80	$    1,320
	60	$      8.40	$       504
Ending Inventory	210		$   1,824

Unit cost :

1320/150 = 8.80

1680/200=8.40

Question 19:

Ans: d.is a quantitative proposed plan of action by management

Question 20:

Ans: d: Control

Reason: the manager keeps control on expenditure and revenue with the help of comparision between budget and actual costs