True or False 31. 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.
True or False 31. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Answer items 31 & 32
Transcribed Image Text:True or False
31. 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.
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