7 Entity A is a distributot of oil. Entity A's inventories areordinarily interchangeable. Entity A maintains a specific levelof inventory such that the latest purchases are the ones7.dispatched first to the sales outlets, Consequently, the latestpurchases are sold first. Which of the following cost formulasshall be used by Entity A?a. Last-in, First-out (LIFO)c. Weighted Averaged.b or cb. FIFO

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Description: 7 Entity A is a distributot of oil. Entity A's inventories areordinarily interchangeable. Entity A maintains a specific levelof inventory such that the latest purchases are the ones7.dispatched first to the sales outlets, Consequently, the latestpur

Inventory valuation is the technique that is used by companies in order to find out the value of the…

Business

Accounting

7. Entity A is a distributot of oil. Entity A's inventories are ordinarily interchangeable. Entity A maintalns a specific level of inventory such that the latest purchases are the ones dispatched first to the sales outlets, Consequently, the lațest purchases are sold first. Which of the following cost formulas shall be used by Entity A? a. Last-in, First-out (LIFO) b. FIFO c. Weighted Average d.bor s

7. Entity A is a distributot of oil. Entity A's inventories are ordinarily interchangeable. Entity A maintalns a specific level of inventory such that the latest purchases are the ones dispatched first to the sales outlets, Consequently, the lațest purchases are sold first. Which of the following cost formulas shall be used by Entity A? a. Last-in, First-out (LIFO) b. FIFO c. Weighted Average d.bor s

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1a The inventory cost flow method that reports the earliest costs in ending inventory is a. LIFO b. weighted average cost c. FIFO d. specific identification
Acceptable methods of assigning specific costs to inventory and cost of goods sold include all of the following except: Multiple Choice LIFO method. FIFO method. Specific identification method. Weighted average method. Retail method.
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Compute a cost to retail percentage under the following conditions. Cost to retail percentage Excluding both markups and markdowns % Excluding markups but including markdowns % Excluding markdowns but including markups % Including both markdowns and markups %
Identify each item as describing the FIFO method, LIFO method, or average cost method of inventory valuation. A. Involves calculating the total number of units in the warehouse FIFO LIFO Average cost B. To determine cost of goods sold, begin with the earliest goods acquired FIFO LIFO Average cost C. To determine merchandise inventory balance, begin with the earliest goods acquired FIFO LIFO Average cost
The costs of ending inventory is similar under both periodic and perpetual inventory system if _________________ method is used. a. first-in, first-out (FIFO) b. standard cost c. weighted average d. last-in, first-out (LIFO)
You have the following information for Kingbird Diamonds. Kingbird Diamonds uses the periodic method of accounting for its inventory transactions. Kingbird only carries one brand and size of diamonds-all are identical. Each batch of diamonds purchased is carefully coded and marked with its purchase cost. March 1 March 3 March 5 March 10 March 25 Beginning inventory 180 diamonds at a cost of €368 per diamond. Purchased 240 diamonds at a cost of €420 each. Sold 224 diamonds for €720 each. Purchased 420 diamonds at a cost of €464 each. Sold 480 diamonds for €780 each.
The cost of the ending inventory under absorption costing is higher than the cost of ending inventory under varibale costing by 1. an amount equal to the fixed overhead cost per unit. 2. an amount computed by multiplying the units in the ending inventory by the fixed costs per unit. 3. an amount equal to the difference in the income amounts under both costing methods. 4. the amount equal to the fixed overhead cost charged to expense during the period.
The Giga Company produces tablet computers. The following information is provided: a) Materials used $216,000 $40,000 $20,000 $50,000 $12,000 $22,000 $80,000 $56,000 $60,000 $18,000 $12,000 $8,000 $14,000 b) Advertising c) Insurance, factory d) Administrative salaries e) Property taxes, factory f) Utilities, administrative building g) Factory labor h) Sales commissions i) Factory supervisor's salary j) Research and development k) Depreciation, factory 1) Depreciation, office m) Indirect materials Classify each of the company's costs as a period cost (general, selling, and administrative cost) or as a direct or indirect product cost. Enter the dollar amount of the cost in the appropriate column. After entering all amounts, calculate the total general, selling, and administrative cost, the total direct product cost, and the total indirect product cost.