a . What is meant by the phrase with the FIFO method, the inventory cost is based

Question:

a. What is meant by the phrase “with the FIFO method, the inventory cost is based on the most recent costs”?

b. Why does the inventory costing method used affect gross profit on sales and net income?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Glencoe Accounting First Year Course

ISBN: 9780078688294

1st Edition

Authors: Andrée Vary

See More Books

Question Posted: Jun 14, 2022 08:05 AM

See More Questions

What is meant by the phrase time value of money?
What is meant by the phrase separate legal entity? To which type of business organization does it apply?
What is meant by the phrase efficient allocation of resources? What mechanism fosters the efficient allocation of resources in the United States?
It happens all too often. As a market researcher, you slave away for countless hours in pursuit of insightful data but, to your shock, your research report flops and your data are dead in the water....
Using your own words, write a description of each of the four components of the classic time-series decomposition technique. Avoid using mathematical relationships and technical jargon as much as...
What are the angular speeds of the (a) Second hand, (b) Minute hand, and (c) Hour hand of a clock? Are the speeds constant?
A stock price $S$ is governed by where $z$ is a standardized Wiener process. Find the process that governs dS as dt +bs dz.
Plants Plus operates a commercial plant nursery, where it propagates plants for garden centers throughout the region. Plants Plus has $4,950,000 in assets. Its yearly fixed costs are $650,000, and...
Consider the below system which is vibrating with sinusoidal input of ?in (38.88?) ?. The damping coefficient of the system is experimentally calculated to be 0.5 ?. ?/?. We locate mass ? 2 along the...
The university data center has two main computers. The center wants to examine whether computer 1 is receiving tasks that require processing times comparable to those of computer 2. A random sample...
Explain why the specific identification costing method is the most accurate in determining inventory cost.
Sunset Surfwear sells wet suits. On January 2 there were 21 wet suits at a total cost of $4,809 in inventory. At the end of the year, there were 17 wet suits in ending inventory. Of these, 1 was...
The president of Lebanon Valley College proposed the following tuition program: provide a 50 percent tuition reduction for those graduating in the top 10 percent of their high school class, 33...
What is the % of insurance contractual adjustments to gross charges?
How could stronger internal controls have prevented or detected the fraud when a firm is buying another firm?
The Power of Nature What is your thesis statement? 5. How do your selected cultures or stylistic periods support your thesis statement? 6. How do your selected artworks support your thesis statement?
Different financial reports can be used to present financial data. What is the purpose of the following financial reports?
Explain how Telemonitoring has Improved Healthcare under the following heading with references 1. How telemonitoring is improving healthcare. 2. Statistics of improvements 3. More physicians visit...
According to the consumer price index in July 2002, the average cost of a gallon of whole milk was $2.74. If the July 2002 rate of inflation continued, it would cost $3.41 in the year 2024. What was...
Recall that Chapter 8 described the binary search algorithm for finding a particular entry in an ordered list. The idea behind binary search is to begin looking in the exact center of the list. If...
The discussion of random assignment experiments in Section 16.1 includes models both with (Equation 16.2) and without (Equation 16.1) two additional observable factors (X 1 and X 2 ). In contrast,...
Suppose that youre interested in the effect of price on the demand for a salon haircut and that you collect the following data for four U.S. cities for 2003: and for 2008: a. Estimate a...
Let's investigate the possibility of heteroskedasticity in time-series data by looking at a model of the black market for U.S. dollars in Brazil that was studied by R. Dornbusch and C. Pechman. In...
The business was established via the receipt of $29 000 of cash and issuance of common stock to the investor. Next the business paid $2 600 in rent for the first month of operations and $14 000 of...
1. List at least 5 Server Management Software that support Virtualisation? 2. What are the two main consoles that Hyper-V uses for virtual machine management? 3. List at least 4 best practices when...
The three location which I have selected are as follows: 1. Venice and its lagoon ( italy) 2. Fossil Hominid ( south africa ) 3. The Pantanal Conservation Area consists of a cluster of four protected...

a . What is meant by the phrase with the FIFO method, the inventory cost is based

Question:

Step by Step Answer:

a The FIFO method of inventory costing means that th...View the full answer

Glencoe Accounting First Year Course

Students also viewed these Business questions