QUESTION: 1. IN THE COST RECONCILIATION REPORT UNDER THE FIFO METHOD, THE COSTS TO BE ACCOUNTED FOR EQUALS THE COST OF BEGINNING WORK IN PROCESS INVENTORY PLUS THE COST OF UNITS TRANSFERRED OUT. TRUE OR FALSE. PLEASE EXPLAIN. 2. WHEN THE PREDETERMINED OVERHEAD RATE IS BASED ON DIRECT LABOR-HOURS, THE AMOUNT OF OVERHEAD APPLIED TO A JOB IS PROPORTIONAL TO THE ESTIMATED AMOUNT OF DIRECT LABOR-HOURS FOR THE JOB. TRUE OF FALSE.
QUESTION: 1. IN THE COST RECONCILIATION REPORT UNDER THE FIFO METHOD, THE COSTS TO BE ACCOUNTED FOR EQUALS THE COST OF BEGINNING WORK IN PROCESS INVENTORY PLUS THE COST OF UNITS TRANSFERRED OUT. TRUE OR FALSE. PLEASE EXPLAIN. 2. WHEN THE PREDETERMINED OVERHEAD RATE IS BASED ON DIRECT LABOR-HOURS, THE AMOUNT OF OVERHEAD APPLIED TO A JOB IS PROPORTIONAL TO THE ESTIMATED AMOUNT OF DIRECT LABOR-HOURS FOR THE JOB. TRUE OF FALSE.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I want answer's of both Questions with Explanation.
Transcribed Image Text:QUESTION:
1. IN THE COST RECONCILIATION REPORT
UNDER THE FIFO METHOD, THE COSTS TO BE
ACCOUNTED FOR EQUALS THE COST OF
BEGINNING WORK IN PROCESS INVENTORY
PLUS THE COST OF UNITS TRANSFERRED OUT.
TRUE OR FALSE. PLEASE EXPLAIN.
2. WHEN THE PREDETERMINED OVERHEAD
RATE IS BASED ON DIRECT LABOR-HOURS,
THE AMOUNT OF OVERHEAD APPLIED TO A
JOB IS PROPORTIONAL TO THE ESTIMATED
AMOUNT OF DIRECT LABOR-HOURS FOR THE
JOB.
TRUE OF FALSE.
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