Fifo cost flow assumption , Accounting Basics

Assignment Help:

1.  Under the FIFO Cost Flow Assumption during a period of inflation, which of the following is false? WHICH OF THE FOLLOWING IS NOT TRUE

a.   Income tax expenses will be higher than under LIFO

b.   Gross Margin will be higher than under LIFO

c.   Ending Inventory will be lower than under LIFO

d.   Cost of goods sold will be lower than under LIFO

e.   All of the above

Yoakum Company reported the following information related to inventory and sales:

Units                                                     Unit Cost

Beginning Inventory                                       1,000                                                     $20

Purchase No.1                                               7,000                                                       22

Purchase No. 2                                              7,000                                                       23

Sales - 7,000 units at $38 per unit

 


Related Discussions:- Fifo cost flow assumption

Adjustments, what will be the journal entry for this: A debit memo from the...

what will be the journal entry for this: A debit memo from the bank was received for bank charges P200.00

On january 1, On January 1, 2012, Lexmark Company's Accounts receivable acc...

On January 1, 2012, Lexmark Company's Accounts receivable account had a debit balance of $10,000. During January, 2012, the company billed customers for services in the amount of

Explain the scope of accounting standards, Fundamental of Accounting 1....

Fundamental of Accounting 1. Explain the concept of accrued income with the help of an example. 2. Explain the five disadvantages of Single Entry System? 3. Explain the s

What is inventory obsolescence, Q. What is Inventory obsolescence? Inve...

Q. What is Inventory obsolescence? Inventory obsolescence -- inventory no longer salable. Possibly there is too much on hand,possible it is out of fashion. True value of the in

Role and activities of an accountant, Having discussed the possibility of a...

Having discussed the possibility of accounting and its emerging function, we are currently in a position to illustrates as to who is an accountant. In an attempt to reply this ques

Explain what is meant by business, Business is an activity performed with t...

Business is an activity performed with the only intention of earning profit. The activity may differ according to the scope and volume.

Explain fob shipping point freight collect, Q. Explain FOB shipping point f...

Q. Explain FOB shipping point freight collect? FOB shipping point freight collect - Buyer both initially pays and incurs the freight chargers. The proper party (buyer) paid the

Prepare trial balance for transaction, Encik Farid, a sole trader, started ...

Encik Farid, a sole trader, started his business on 1 May 2010 under the name Farid Enterprise. The following are his business transactions for the month of May a.  Encik Farid

Management, briefly explain management process

briefly explain management process

Exploration cost, is exploration cost for mining companies regarded as asse...

is exploration cost for mining companies regarded as assets or expense?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd