If a business operates in an industry that experiences significant cost changes, should the business prepare its production cost report using the FIFO method or the weighted-average method?
Explain your answer.
The business should use the FIFO method. This method would create better month-to-month cost comparisons. The more detailed cost information obtained from the FIFO method would allow managers to make better pricing and product mix decisions.
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A) was once common, but not anymore. B) happens only when the applicant has a very poor credit rating. C) is illegal in the U.S. D) is a diplomatic way of denying applications. E) is a common practice.
If D1 = $1.25, g (which is constant) = 5.5%, and P0 = $44, what is the stock's expected total return for the coming year?
A. 7.54% B. 7.73% C. 7.93% D. 8.13% E. 8.34%
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Indicate whether the statement is true or false
Robnett Corporation manufactures one product. It does not maintain any beginning or ending Work in Process inventories. The company uses a standard cost system in which inventories are recorded at their standard costs. There is no variable manufacturing overhead. The standard cost card for the company's only product is as follows:InputsStandard Quantityor HoursStandard Price or RateStandard CostDirect materials3.8liters$6.50per liter$24.70Direct labor0.60hours$18.00per hour 10.80Fixed manufacturing overhead0.60hours$18.50per hour 11.10Total standard cost per unit $ 46.60During the year, the company completed the following transactions:a. Purchased 106,900 liters of raw material at a price of $6.80 per liter.b. Used 93,760 liters of the raw material to produce 24,700 units of
work in process.Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page. The beginning balances in each of the accounts have been given. PP&E (net) stands for Property, Plant, and Equipment net of depreciation.?CashRaw MaterialsWork in ProcessFinished GoodsPP&E (net)=Materials Price VarianceMaterials Quantity Variance1/1$1,110,000$54,340$0$60,580$616,800=$0$0a.?????=??b.?????=???Labor Rate VarianceLabor Efficiency VarianceFOH Budget VarianceFOH Volume VarianceRetained Earnings1/1$0$0$0$0$1,841,720a.?????b.?????When recording the raw materials purchases in transaction (a) above, the Cash account will increase (decrease) by: A. ($726,920) B. ($694,850) C. $726,920 D. $694,850