A company produces and sells the following quantites of a product: Date Number of tons Total Costs July 1 Opening Inventory 10 P200 4 Production 8 176 6 Sale 9 15 Production 6 144 18 Sale 11 23 Production 4 104 Question: Which statement is true? A. Cost of goods sold using FIFO is higher than cost of goods sold using weighted average. B. Profit using FIFO is higher than profit using weighted average. C. Total assets at July 31 is higher using weighted average than total assets using FIFO. D. Profit is not affected by the costing method used to measure inventory.
A company produces and sells the following quantites of a product:
Date Number of tons Total Costs
July 1 Opening Inventory 10 P200
4 Production 8 176
6 Sale 9
15 Production 6 144
18 Sale 11
23 Production 4 104
Question:
Which statement is true?
A. Cost of goods sold using FIFO is higher than cost of goods sold using weighted average.
B. Profit using FIFO is higher than profit using weighted average.
C. Total assets at July 31 is higher using weighted average than total assets using FIFO.
D. Profit is not affected by the costing method used to measure inventory.
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