Considering the data given above, under variable costing and absorption costing, ending inventory would be valued at:      Assuming sales price per unit is ₱15, under variable costing and absorption costing, net operating income would be:

Q: Prepare the absorption costing income statements that Sarah would have shown Jason for both years…

A: Income statement under absorption costing method is to be prepared for 2 years. Absorption costing…

Q: Kertas, Inc. produces paper and office supplies and uses the​ just-in-time inventory system.​…

A: Just in time inventory system is the system where the Purchase is done only when it is required , so…

Q: Based on variable costing, what would NUBD Corp. show as the value of its ending inventory?

A: Under variable costing fixed cost is not taken into account. The variables cost like direct…

Q: True or false. economic order quantity occurs where the total cost total annual carrying equals the…

A: EOQ is economic order quantity which is optimal order quantity

Q: The variable cost ratio is calculated as: а. The selling price per unit ratio / variable cost per…

A: Variable cost = Variable manufacturing cost + Variable selling and administrative cost

Q: 1. Prepare a table indicating contribution margin, variable cost of goods sold as a percent of…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Given the historical cost of product Dominoe is $37, the selling price of product Dominoe is $40,…

A: Under U.S GAAP, inventories are valued at lower of cost or market value. Here, cost means purchase…

Q: If Actual sales are OMR 470000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and…

A: Margin of safety means sales revenue over and above breakeven sales revenue. Breakeven sales revenue…

Q: In times of decreasing prices, LIFO will result in ____ costs of goods sold and _____ ending…

A: FIFO: FIFO stands for First-In, First-Out.  In this method inventory purchased first will be sell…

Q: If inventory increased during the year, income reported under absorption costing: will be higher…

A: Solution: If inventory increased during the year, income reported under absorption costing "will be…

Q: As compared with the FIFO method of costing inventories,does the LIFO method result in a larger or…

A:

Q: In comparing the absorption and variable cost methods, each of the following statements is true…

A: Variable Costing: The variable costing is a method used to allocate the fixed manufacturing overhead…

Q: Using the table below, create a line chart in which profit or loss is plotted on the Y-axis and…

A: Selling price per Unit= $16 Variable Cost per unit= $11 Fixed cost in total= $505000

Q: On the cost- volume -profit graph , the area between the total cost line and the sales line before…

A: Cost-volume-profit graph represents the sales line, total cost line, variable cost, fixed costs and…

Q: Hex Industries reports the following information for May: Sales Fixed cost of goods sold Variable…

A: Gross profit can be calculated by deducting the cost of goods sold from net sales. The cost of goods…

Q: When the number of units sold exceed the number of units produced, income reported under absorption…

A: Fixed overhead costs include those costs which shall not vary with the production output. In…

Q: Which formula reconciles the difference between absorption and variable-costing income?   a. Change…

A: Net operating income under absorption costing = Net operating income under variable costing + Change…

Q: Under variable costing, which of the following costs are assigned to inventory?  Variable Selling &…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: In one modification of the Pigskin problem, the maxi-mum storage constraint and the holding cost are…

A: Given: To explain the change of the optimal production schedule and cost is given as,

Q: Which one of the following variables is not explicitly considered in the computation of the Economic…

A: Economic Order Quantity is entity's optimal order quantity to minimize total costs retated to…

Q: 1. Compute the Cost of Goods Sold, Ending Inventory, and Gross Profit using the following cost flow…

A: Date                    Particulars                          Input Quantity  output Qty Unit cost…

Q: When purchase prices are rising, which of the following statements is true? a.LIFO produces a…

A: FIFO method means first in first out which means that cost of goods sold valued at older prices and…

Q: Using the given data…find the answers for Formulas 1-10.  Sales  Variable manufacturing cost Fixed…

A: Sales = Selling price per unit * number of sold units = 30*80000 = $24,00,000 Variable manufacturing…

Q: If costs are rising, which of the following will be true?a. The cost of goods sold will be greater…

A:

Q: On a traditional income statement, sales revenue less cost of goods sold equals   Question 26…

A: The income statement is prepared to find net income or losses incurred during the period.

Q: variable costing

A: What will be the difference in net earnings computed using variable costing as opposed toabsorption…

Q: The table represents the breakdown of cost structure, which is constructed based on the information…

A: It has been seen from the table that the markdown of Zara is lower i.e.2.6 as compared to their…

Q: Product costs under variable costing are typically: Group of answer choices A. higher than under…

A:

Q: Following information is related to Product X of Zempa Company: Current replacement cost $230 Cost…

A: Current replacement cost               $230 Cost to distribution                          $42…

Q: Margin of safety ratio is computed by dividing excess of actual or budgeted sales from break- even…

A: Margin of safety ratio = Profit ratio / Contribution margin ratio

Q: Inventory values calculated using variable costing as opposed to absorption costing will generally…

A: Inventory is referred to as current asset which includes raw materials, work in process inventory…

Q: What will be the difference in net earnings computed using variable costing as opposed to absorption…

A: Under variable costing, whole amount of fixed overhead will be charged in the income statement.…

Q: b order to attract investors and borrow on attractive terms, a company would use in times when…

A: When the cost of inventory is raising, the cost of holding old stock will get higher.  The inventory…

Q: If Actual sales are OMR 450000, Total Fixed costs OMR 120000, Selling price per unit OMR 50, and…

A: Actual sales= OMR450000 Total fixed cost= OMR120000 Selling price per unit= OMR50 Variable price per…

Q: variable costing

A: Option a is wrong because even if there is no change in the fixed costs in the beginning and ending…

Q: Which of the following is NOT an assumption of cost-volume-profit analysis?   Question 10…

A: The question is based on the concept of Cost Accounting.

Q: In comparing the absorption and variable cost methods, each of the following statements is true…

A: Variable Costing:The variable costing is a method used to allocate the fixed manufacturing overhead…

Q: This best accounts for the difference in profit between the absorption and variable costing *…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: The actual variable cost of goods sold for a product was $140 per unit, while the planned variable…

A:

Q: Given the following information, answer thequestions:• The ratio of variable cost per unit divided…

A: The Break-even point is the situation where the company does faces any loss whereas, it does not…

Q: When production exceeds sales, a. Ending inventory under variable costing will exceed ending…

A: Option no. (b) is correct.

Q: When reconciling variable costing and absorption costing net operating income, fixed overhead costs…

A: Solution: S1. When reconciling variable costing and absorption costing net operating income, fixed…

Q: Which cost flow assumption generally results in the highest reported amount of net income in periods…

A: Solution: Under FIFO method, inventory is valued at latest purchase cost. Therefore in period of…

Q: The contribution margin ratio can be calculated in all of the following ways except: a.1 − Variable…

A: Contribution margin ratio is the difference total sales and total variable cost which is calculated…

Q: Total variable costs? Variable cost per unit produced  Variable cost per unit produced? If 75% of…

A: Answer:   Particulars Amount Materials 85000 Direct Labour cost 70000 Indirect…

Q: Assume that the linear cost and revenue models apply. An item costs $12 to make. If fixed costs are…

A: According linear model: R(x) = mx +c Total revenue = Total cost + Profit Total revenue =…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.