Each of the following statements describes preparing a production report using either the FIFO Method or the Weighted Average Method. List the letters that correspond to the statements that accurately describe the FIFO Method.a. Separates units in beginning inventory from those that were started during the current period.b. Combines the cost of beginning inventory with the costs that were incurred during the period.c. Averages the cost of units in beginning inventory with the costs of units that were started during the period.d. Assumes the units in beginning inventory were completed before any new units were started.e. Combines the units in beginning inventory with the units that were started during the period.f. Is the simpler method and more frequently used in practice.g. May be a less
accurate method, particularly for companies that hold significant inventory.h. More closely matches the actual flow of costs in many industries.
What will be an ideal response?
a, d, h
The FIFO Method assumes the units in beginning inventory were completed before any new units were started, and it separates the units in beginning inventory (and their cost) from units that were started during the current period. The FIFO Method more closely matches the actual flow of costs in many industries, and because of that, it is often considered to be more accurate. The FIFO Method is more complicated to use than the Weighted Average Method, so it is less commonly used in practice.
You might also like to view...
Within the make payment process, the three sub-processes are "Prepare proposed payments", "Select and record payments," and ______________________________
Fill in the blank(s) with correct word
The ViVi brand is a line of designer clothing for pregnant businesswomen. If its owner believes that professional women in other countries have a need for conservative maternity wear, the owner of the small company would most likely hire a(n) ________ to locate and negotiate with buyers in other countries.
A. licensee B. joint venture partner C. licensor D. franchisee E. export merchant
At the beginning of Year 2, Griggs Company had a $64,000 of accounts receivable. During Year 2, Griggs earned revenue on account totaling $336,000. At the end of Year 2, the company had $44,000 of accounts receivable. Required:What was the amount of cash collected from accounts receivable during year 2?
What will be an ideal response?
Macro-marketing
A. applies only to nonprofit organizations. B. helps consumers that need a narrow assortment of products. C. is what people have in mind when they talk about marketing in everyday use. D. is a social process. E. concerns the activities of individual managers.