Answered: s it always higher in cost of goods…

Business

Accounting

s it always higher in cost of goods sold in Weighted average compared to FIFO?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 3DQ: How do you calculate the markup on cost of goods sold? Is the markup pure profit? Explain.

See similar textbooks

Related questions

Q: Weighted average cost per unit = per unit. Cost Cost of Goods Allocation Cost of Goods Sold Ending…

A: Sales = (50 units x $120) + (25 units x $125) = $6000 + $3125 = $9125 Cost of Goods Available = (100…

Q: Why do better decisions regarding the purchasing and managing of goods for sale frequently cause…

A: Costing: Costing is a technique used in cost accounting to determine the cost of a product. With the…

Q: a. Net sales b. Cost of goods sold C. Gross profit on sales

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Under the LIFO cost flow assumption during a period ofinflation, which of the following is false? A.…

A: Inflation and cost of goods sold - a company selling goods during periods of inflation will see an…

Q: Under the gross profit method, if the gross profit rate is based on cost, the cost of sales is…

A: The gross profit method is the one wherein the amount of inventory is measured using the gross…

Q: From the following: What is the industry average price–earnings ratio? What is Ragan’s…

A: The industry average PE ratio can be calculated as follows : P/E ratio = Price earningsPutting…

Q: If inventory is being valued at cost and the price level is steadily rising, which of the three…

A: Inventory can be defined as a form of asset which is held by a business firm for resale purposes.…

Q: Net sales minus cost of good sold is equal to cost of ending inventory. T/F

A: The ending inventory is the amount of inventory left with business at year end.

Q: Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit)…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: Net Sales Revenue: Variable Cost of Goods Sold: Fixed Cost of Goods Sold: Variable Selling and…

A: Absorption costing considers all costs of manufacturing as product costs irrespective of the nature…

Q: Which inventory cost flow assumption generally results in the lowest reported amount for cost of…

A: The answer will be FIFO, First-in, first-out i.e. option B.

Q: Which of the following statements is NOT true of Economic Order Quantity? O A. The economic order…

A: EOQ: Economic Order Quantity is basically the optimal quantity of number of orders which in turn…

Q: ow much is the total net revenue? ow much is the total net profit from the operation ow much is the…

A: As per rule, allowed to answer one question and post the remaining in the next submission.

Q: Using Average - perpetual, how much is the cost of ending inventory per unit? Using Average -…

A: Under average cost method of inventory, average cost per unit of inventory is used for calculation…

Q: Contribution is the difference between sales and the marginal (variable) cost of sales

A: Contribution = Sales - Variable cost

Q: In a period of rising prices, FIFO will result in O lower net income than LIFO. lower net purchases…

A: Inventory valuation is the process by which the inventory of the entity is valued. It can be done…

Q: 8. The difference between total sales in dollars and total cost of goods sold is called: A. net…

A: When the total cost of goods sold is subtracted from the total sales in dollar, we arrive at the…

Q: How is the profit margin on sales calculated?

A: Profit margin on sale: it's categorized under profitability ratio , generally this ratio is used to…

Q: : The difference between total sales revenue and total cost of goods sold is the Group of answer…

A: Trade margin = Total sales revenue - Total cost of goods sold

Q: What does the price earning ratio indicate?

A: Price to earnings ratio (P/E ratio) compares the price with earnings per share. It will be…

Q: During periods of rising prices, which method (FIFO-LIFO-AVCO) results in the highest gross profit?…

A: First-in-First-Out (FIFO): In this method, items purchased initially are sold first. So, the value…

Q: ith inflation, what are the implications of using LIFO and FIFO inventory methods? How do they…

A: FIFO: First in, first out (FIFO) is a method of asset management and valuation in which assets…

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

A: Contribution Margin = Sales Price - Variable Costs Variable Cost of Goods Sold as a Percent of Sales…

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

Q: Which of the following is equal to the cost of goods sold? a. net purchases plus the excess of…

A: The question is related to cost of goods sold. The cost of goods sold is calculated with the help of…

Q: Calculate cost of goods sold using: 1) FIFO 2) Weighted-average cost || 3) LIFO

A: FIFO Method:

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: (b) Will the results in (a) be higher or lower than the results under FIFO and LIFO? Ending…

A: Ending inventory is 100 units at the end of June. So the cost of ending inventory as per following…

Q: In a period of rising prices,a. cost of goods sold under LIFO will be less than under FIFO.b. gross…

Q: A measure of the overall price level paid for various goods and services by individuals: O a. Gross…

A: Solution:- Gross Domestic Product (GDP) means the sum total of prices of goods and services paid by…

Q: If inventory is being valued at cost and the price level is steadily rising, which of the three…

A: Introduction:

Q: Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit…

A: Cost of goods sold means cost incurred on goods or cost of goods that are being offered for sale to…

Q: If merchandise inventory is being valued at cost and the price level is decreasing, which of the…

A: Inventory cost is calculated by LIFO, FIFO and average cost method. Under LIFO method, inventory…

Q: Which product line has the highest gross profit %? Which product line has the highest net income %?

Q: The gross profit rate is equal to: Choose net income divided by sales. cost of goods sold divided by…

A: Income statement is a part of financial statements of a company. It shows the company’s income and…

Q: What does it mean to have a Price- earnings ratio that is higher or lower than the norm?

A: Price-earnings ratio (P/E ratio) = price per share/earnings per share

Q: If merchandise inventory is being valued at cost and the purchase price is steadily falling, which…

A: Inventory can be valued using many ways such as : FIFO LIFO Weighted Average Average cost

Q: Which of the following statements is true with regard to the gross profit ratio? An increase in…

A: Gross profit is an excess amount of revenue over its cost of goods sold.it measures profitability…

Q: . Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…

A: 1. Which of the following is TRUE about contribution margin? Select one: A. The amount remaining…

Q: What will be the correct answer for weight average cost method for ending inventory and cost of…

A: Weighted average Cost per unit=11-6×$70+14×$10511-6+14=$182019=$95.79

Q: Conversion cost during the period? Cost of goods available for sales? Cost of goods sold?

A: Hi student Since there are multiple subparts, we will answer only first three subparts

Q: Compute the gross margin for FIFO method and LIF0 method. FIFO: LIFO: Sales revenue Less: Cost of…

A: Sales revenue has to be calculated by multiplying units sold (785 units) to the retail rate…

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

A: FIrst in first out or FIFO cost flow assumption provides highest net income when inventory prices…

Q: Use the following selected information from Whitman Corp. to determine the Year 1 and Year 2 common…

A: Common size percentage for cost of goods sold = Cost of good sold/Net sales

Question

Is it always higher in cost of goods sold in Weighted average compared to FIFO?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Is the cost of sales under weighted average always greater than the cost of sales in FIFO?
Contrast the income statement effect of LIFO versus FIFO(on Cost of Goods Sold and Gross Profit) when ( a ) costsare rising and ( b ) costs are falling.
Cost of goods sold divided by variable cost equals units. O True False
How to compute the cost of sales using moving average method?
What does it mean to have a Price- earnings ratio that is higher or lower than the norm?
How much is the cost of goods sold using average method?
Give the solution: How much is the total cost of goods sold?
how do i calculate the weighted average of cost of goods sold
How would reported income differ if LIFO rather than FIFO were used when purchase prices are rising? When purchase prices are falling?
What is the difference between the cost of goods available for sale and the cost of goods sold?
What does the price earning ratio indicate?
Which of the following formulas is used to calculate the contribution margin ratio?(Sales − Fixed costs) ÷ Sales.(Sales − Total costs) ÷ Sales.(Sales − Cost of goods sold) ÷ Sales.(Sales − Variable costs) ÷ Sales.