Answer items 39 & 40 True or False31. When prices are rising, lower income will be reported using FIFO compared with using LIFO.32. An overstated ending inventory leads to understated net income.33. The purchase price per unit of inventory is relevant in the computation on EOQ.34. Total factory labor cost is composed of direct and indirect labor.35. The total factory labor cost is debited to the work-in-process account.36. Gross earnings of an employee include employer's share in SSS contribution.37. Process costing is used by companies making unique products.38. Determining the unit cost of a product is an output of financial accounting.39. Fixed cost is constant per unit of product.40. There will be fewer supplies under JIT than a conventional system.

Fixed costs are those costs which will not change with change in activity level. JIT is just in time…

Answered: Answer items 39 & 40

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 9QE

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L. What is the ending balance in Finished Goods ? (Show T-Account ) M. Assuming that the company closes its underapplied or overapplied overhead to Cost of Goods Sold, what is the adjusted cost of goods sold for the year? N. What is the gross margin for the year ? O. What is the net operating income for the year ?
389 Which of the following is excluded in the scope of PAS2 on Inventories? C. expensed directly into equity in the period in which the items are used. D. Land held for resale by subdivision company or real estate developer D. aggregated into the 'cost of goods sold' expense in the period in which the 388. Which one of the following is included in the scope of PAS 2 but excluded from the 395. Under PAS 2, items of inventory that are used by business enterprise as PAS 2, Inventories measurement rule? A Finished goods produced. B. Biological assets held for regular sale. C. Damaged merchandise inventory of a retailer. PRTC 0513 C. Manufacturing supplies A. Construction in progress. B. Inventories of a service provider. D. Raw materials 390. Inventories under PAS 2 do not include A. Construction-in-progress. B. Finished goods. C. Goods held for resale. D. Raw materials. 391. Which may be included as part of the cost of inventories under PAS 2722 A. Selling costs. B. Administrative costs.…
Mercado Company's inventory transactions in the fiscal year ended December 31, 2002, follow: Beginning Inventory Jan. 10 Purchase Jan. 1 Feb. 13 Purchase Jul. 21 Purchase 775 units @ $52/unit Feb. 15 Sales @ 600 units @ $53/unit 225 units @ $54/unit Aug. 10 Sales @ 285 units @ $55/unit Aug. 5 Purchase Mercado Company uses a perpetual inventory system. Its inventory had a selling price of $115 per unit, and it entered into the following current-year sales transactions: 450 units @ $56/unit 515 units $115/unit 275 units $115/unit
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XOUT Inc.manufactures stone counter top cleaner in a continuous process and uses a process cost system. During the month the company started 500,000 gallons of raw material into process at a cost of $450,000. It takes 1.25 gallons of raw material to produce 1 gallon of cleaner. In addition the company spent $1,200,000 in direct labor cost and $2,000,000 in manufacturing OH. During the month 350,000 gallons of cleaner were complete and transferred to finished goods. 300,000 gallons of cleaner were sold for a total price of $3,100,000. At the end of the month the stone cleaner still in WIP inventory was 100% complete as to raw matl. and 35% complete as to direct labor and factory OH.
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View Policies Current Attempt in Progress You have the following information for Oriole Diamonds. Oriole Diamonds uses the periodic method of accounting for its inventory transactions. Oriole 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 Beginning inventory 177 diamonds at a cost of €362 per diamond. March 3 Purchased 236 diamonds at a cost of €413 each. March 5 Sold 220 diamonds for €708 each. March 10 Purchased 413 diamonds at a cost of €456 each. March 25 Sold 472 diamonds for €767 each. (a) Assume that Oriole Diamonds uses the specific identification cost flow method. (1) Demonstrate how Oriole Diamonds could maximize its gross profit for the month by specifically selecting which diamonds to s To maximize gross profit, Oriole Diamonds should sell the diamonds with the Demonstrate how Oriole Diamonds could minimize its gross profit for the month by selecting which diamonds…

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