"The amounts obtained for cost of goods sold and ending merchandise inventory are always the same for FIFO perpetual and FIFO periodic." Is this statement true? Why or why not?
What will be an ideal response
This is a true statement. This occurs because FIFO sells the oldest inventory acquisitions first. Therefore, it does not matter when FIFO is calculated; the earliest purchase will always be the same whether the cost of goods sold is calculated on the sale date (perpetual) or at the end of the period (periodic).
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The Maastricht Treaty called for:
A) the creation of an Asia Free Trade Area (AFTA). B) the creation of an economic and monetary union in Europe. C) Chile's acceptance into Mercosur. D) the purchase of CDs and tapes from distributors in Europe. E) the creation of the seven-nation European Free Trade Association (EFTA).
What is the effect on net income if a company fails to record a purchase in transit (FOB shipping point) and also fails to include the purchase in physical inventory?
A) Income is overstated. B) Income is understated. C) Income is correct. D) Not enough information is provided to determine the answer.
Hardigree Corporation makes a product that has the following direct labor standards: Standard direct labor-hours 0.3hours per unitStandard direct labor rate$23.00per hourIn May the company's budgeted production was 8,900 units, but the actual production was 8,800 units. The company used 2,820 direct labor-hours to produce this output. The actual direct labor cost was $70,218.The labor rate variance for May is:
A. $5,016 F B. $5,358 F C. $5,016 U D. $5,358 U
Variable costing allows a manager to classify controllable costs as
A) variable and fixed costs. B) avoidable and unavoidable costs. C) necessary and unnecessary costs. D) short-term and long-term variable costs.