The equivalent units of production for direct materials and conversion costs must be the same
Indicate whether the statement is true or false
FALSE
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U.S. GAAP and IFRS allows the use of present value to calculate the cost of an asset except:
a. When assets are held for more than one year. b. When assets are held for less than one year. c. When assets are depreciated using the straight line method d. When asset are sold in the middle of the accounting cycle.
Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO. DateActivitiesUnits Acquired at CostUnits Sold at RetailMay 1Beginning Inventory330 units @ $18 5Purchase310 units @ $20 10Sales 230 units @ $2815Purchase190 units @ $21 24Sales 180 units @ $29
A. $8590 B. $7750 C. $16,130 D. $7540 E. $8260
Bleeker Street Company produces and sells two lines of business suits, the Contemporary and the Traditionalist. The following monthly data are provided: Contemporary TraditionalistEstimated unit sales per month 500 1,000 Selling price$200 $175 Variable manufacturing costs 110 100 Variable selling and administrative costs 10 10 Budgeted net income is $45,000 per month. Required:1) Calculate the monthly break-even sales in units and dollars based on the budgeted sales mix.2) Calculate the firm's overall margin of safety in dollars.3) Compute the firm's profit assuming 1,500 units are sold in a 1:1 sales mix.4) Explain any difference between the firm's budgeted net income of $35,000 and your answer to Requirement 3.
What will be an ideal response?
For the purposes of capital investment analysis, income tax effects are excluded from computations
Indicate whether the statement is true or false