Question
In 2019, opening inventory has 15,000 products, and the company produces 45,000 products and then sell 50,000 products. In 2020, the company produces 60,000 products.
In 2019, opening inventory has 15,000 products, and the company produces 45,000 products and then sell 50,000 products. In 2020, the company produces 60,000 products. Fixed cost is 90,000,000 per year and based on products that were produced. Variable cost per year is 10% of the revenue. FIFO method is used for inventory.
Statement income
Revenue 350,000
COGS 210,000
Gross Profit 140,000
Selling and administrative expenses 100,000
Net income 40,000
The CEO disagrees with the results and thinks that this year's results may be higher than reported figures. What plan do you have to satisfy the CEO?
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In this example the closing stock in 2019 is 150004500050000 units whic...
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
