Theres no reason for me to get excited about the choice between the weighted-average and FIFO methods
Question:
There’s no reason for me to get excited about the choice between the weighted-average and FIFO methods in my process-costing system. I have long term contracts with my materials suppliers at fixed prices. Do you agree with this statement made by a plant controller? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (16 reviews)
Materials are only one cost item Other items often included in a ...View the full answer
Answered By
Chiranjib Thakur
I have no tutoring experience yet, but I can share my skills and knowledge gained from my education and work experiences. I have been a CPA since 2012 with 6 years of work experience in internal auditing and 4 years of work experience in accounting at the supervisory level.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
Question Posted:
Students also viewed these Cost Accounting questions
-
Do you agree with this statement? All liabilities could be legally enforced in a court of law.
-
Do you agree with this statement: As price goes up, demand goes down? Explain your answer.
-
The weighted average and FIFO methods generally result in approximately the same unit costs because costs do not usually vary dramatically from period to period. Discuss some reasons for exceptions...
-
Practice Problem 6: We-B-Busy, Inc. uses job costing and a predetermined overhead rate based on machine hours (MH). The firm estimated that it would use $240,000 of MOH and 7,500 MH this year. Data...
-
Why does the existence of a cutoff frequency in the photoelectric effect argue in favor of the photon model of light?
-
The cheque-clearing office of Pay Loans Company is responsible for processing all cheques that come to the company for payment. Managers at the company believe that variable over- head costs are...
-
Harley-Davidson's balance sheet in Appendix A Harley- reports that cash and equivalents decreased dur- Davidson ing the fiscal year ended December 31, 2002. Identify at least three major causes of...
-
Chen Chocolate Company's EPS in 2016 was $1.25, and in 2011 it was $0.75. The companys payout ratio is 50%, and the stock is currently valued at $37.75. Flotation costs for new equity will be 15%....
-
Find the derivative of the function. s=t In |t| ds dt
-
Derive and solve the equation of motion for the mass m in terms of the variable x for the system shown. Neglect the mass of the lever AOC and assume small oscillations. C k2 k1 ww TxB = bo cos ot A a
-
Transferred-in costs are those costs incurred in the preceding accounting period. Do you agree? Why?
-
Why do better decision regarding the purchasing and managing of goods for sale frequently cause dramatic percentage increases in net income?
-
Determine whether the statement is true or false. If it is true, explain why. If it is false, explain why or give an example that disproves the statement. The Ratio Test can be used to determine...
-
Give the adjacency matrix representation of the given weighted graph: 2. 2 2 3 1 2 15 13 3 4 9 Give the adjacency list representation of the given directed graph: A B C D E
-
These financial statement items are for Sheridan Company at year-end, July 31, 2022. Salaries and wages payable $1,500 Notes payable (due after 2023) $1,600 Salaries and wages expense 52,000 Cash...
-
What reasons would make you choose a single domain model? What reasons would make you choose a multiple domain model?
-
How do cultural narratives and symbols construct and perpetuate societal structures of power, privilege, and marginalization ?
-
How does cultural pluralism influence societal norms and values, and what implications does this have for social cohesion and identity formation ?
-
What is the decay rate (m)? Carbon-14 is a radioactive element with a half-life of about 5,730 years. Carbon-14 is said to decay exponentially. The decay rate is 0.000121. We start with one gram of...
-
Annual dividends of ATTA Corp grew from $0.96 in 2005 to $1.76 in 2017. What was the annual growth rate?
-
Use thermodynamic data at 298 K to decide in which direction the reaction is spontaneous when the partial pressures of SO 2 , O 2 , and SO 3 are 1.0 x 10 -4 , 0.20, and 0.10 bar, respectively. 2...
-
Panagra, Inc. manufactures digital cameras. It has two departments: assembly and testing. In January 2020, the company incurred $775,000 on direct materials and $816,000 on conversion costs, for a...
-
Transferred-in costs are those costs incurred in the preceding accounting period. Do you agree? Explain.
-
Why should the accountant distinguish between transferred-in costs and additional direct materials costs for each subsequent department in a process-costing system?
-
Question 4 of 6 < > -/15 Current Attempt in Progress Sheridan Company has accounts receivable of $202,000 at September 30, 2024. An analysis of the accounts shows the following: Month of Sale Balance...
-
The charge on your rent-to-own washer is $40 per month. After 32 months, you get to keep the washer. How much does the washing machine end up costing you? Cost of washing machine
-
Prepare horizontal analysis on income statement below: Bristol Myers Squibb Co. (NYS: BMY) Report Date 2020 2019 2018 Net product sales 41,321 25,174 21,581 Alliance & other revenues 1,197 971 980...
Study smarter with the SolutionInn App