FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
A company produces and sells the following quantites of a product:
Date Number of tons Total Costs
July 1 Opening Inventory 10 P200
4 Production 8 176
6 Sale 9
15 Production 6 144
18 Sale 11
23 Production 4 104
Question:
Which statement is true?
A. Cost of goods sold using FIFO is higher than cost of goods sold using weighted average.
B. Profit using FIFO is higher than profit using weighted average.
C. Total assets at July 31 is higher using weighted average than total assets using FIFO.
D. Profit is not affected by the costing method used to measure inventory.
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- Consider the following income statement data for Wildhorse Inc.: Sales revenue Less: Cost of goods sold Gross profit Less: Selling and administration costs Net Income 2024 $99300 47500 51800 23100 $28700 What was the 2024 profit margin closest to? 2023 $86900 56400 30500 18900 $11600arrow_forwardCompare the performance of Fly X to the Industry. For each ratio, comment on whether Fly X is positive or negative relative to the Industry. Median Industry Fly X Ratios Current Ratio 1.43X 1.45 Quick Ratio 0.84X 0.88 Total Asset Turnover Ratio 0.85 1.30 Inventory Turnover Ratio 6.15 12.10 Average Inventory Ratio 59.35 30.17 Receivables Turnover 9.82 13.08 Average Collection Period 37.17 27.90 Debt Ratio 0.52 0.39arrow_forwardA comparative income statement follows for Martine Ltd. of Montreal: MARTINE LTD. Comparative Income Statement For the Years Ended October 31, Year 1 and Year 2 Year 2 Year 1 Sales $ 8,050,000 $ 6,050,000 Less: Cost of goods sold 5,095,650 3,605,800 Gross margin 2,954,350 2,444,200 Less: Operating expenses: Selling expenses 1,529,500 1,131,350 Administrative expenses 756,700 726,000 Total expenses 2,286,200 1,857,350 Net operating income 668,150 586,850 Less: Interest expense 136,850 114,950 Net income before taxes $ 531,300 $ 471,900 Members of the company's board of directors are surprised to see that net income increased by only $59,400 when sales increased by $2,000,000. Required: 1. Express each year’s income statement in common-size percentages. (Round your answers to 1 decimal place.)arrow_forward
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