Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

Question

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Answer 1

Question

Chapter 8, Problem 44C

1.

To determine

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

2.

To determine

Explain the reason why the ending balance of finished goods inventory for year 2 is same under both absorption and variable costing.

3.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

4.

To determine

Calculate the declined amount of finished goods inventory during year 2 under absorption costing and variable costing.

5.

To determine

Calculate the difference in the amount of declined finished goods inventory under absorption and variable costing, calculate the difference in the reported operating income for year 2 under absorption and variable costing, and compare both differences.

6.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

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Answer 2

Question

Chapter 8, Problem 44C

1.

To determine

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

2.

To determine

Explain the reason why the ending balance of finished goods inventory for year 2 is same under both absorption and variable costing.

3.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

4.

To determine

Calculate the declined amount of finished goods inventory during year 2 under absorption costing and variable costing.

5.

To determine

Calculate the difference in the amount of declined finished goods inventory under absorption and variable costing, calculate the difference in the reported operating income for year 2 under absorption and variable costing, and compare both differences.

6.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

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Answer 3

Question

Chapter 8, Problem 44C

1.

To determine

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

2.

To determine

Explain the reason why the ending balance of finished goods inventory for year 2 is same under both absorption and variable costing.

3.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

4.

To determine

Calculate the declined amount of finished goods inventory during year 2 under absorption costing and variable costing.

5.

To determine

Calculate the difference in the amount of declined finished goods inventory under absorption and variable costing, calculate the difference in the reported operating income for year 2 under absorption and variable costing, and compare both differences.

6.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

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Answer 4

Question

Chapter 8, Problem 44C

1.

To determine

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

2.

To determine

Explain the reason why the ending balance of finished goods inventory for year 2 is same under both absorption and variable costing.

3.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

4.

To determine

Calculate the declined amount of finished goods inventory during year 2 under absorption costing and variable costing.

5.

To determine

Calculate the difference in the amount of declined finished goods inventory under absorption and variable costing, calculate the difference in the reported operating income for year 2 under absorption and variable costing, and compare both differences.

6.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 44C

1.

To determine

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

2.

To determine

Explain the reason why the ending balance of finished goods inventory for year 2 is same under both absorption and variable costing.

3.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

4.

To determine

Calculate the declined amount of finished goods inventory during year 2 under absorption costing and variable costing.

5.

To determine

Calculate the difference in the amount of declined finished goods inventory under absorption and variable costing, calculate the difference in the reported operating income for year 2 under absorption and variable costing, and compare both differences.

6.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

Answer 6

Chapter 8, Problem 44C

1.

To determine

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

Answer 7

Chapter 8, Problem 44C

1.

To determine

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

Answer 8

2.

To determine

Explain the reason why the ending balance of finished goods inventory for year 2 is same under both absorption and variable costing.

Answer 9

2.

To determine

Explain the reason why the ending balance of finished goods inventory for year 2 is same under both absorption and variable costing.

Answer 10

3.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

Answer 11

3.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

Answer 12

4.

To determine

Calculate the declined amount of finished goods inventory during year 2 under absorption costing and variable costing.

Answer 13

4.

To determine

Calculate the declined amount of finished goods inventory during year 2 under absorption costing and variable costing.

Answer 14

5.

To determine

Calculate the difference in the amount of declined finished goods inventory under absorption and variable costing, calculate the difference in the reported operating income for year 2 under absorption and variable costing, and compare both differences.

Answer 15

5.

To determine

Calculate the difference in the amount of declined finished goods inventory under absorption and variable costing, calculate the difference in the reported operating income for year 2 under absorption and variable costing, and compare both differences.

Answer 16

6.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

Answer 17

6.

To determine

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

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Answer 21

Ch. 8 - Briefly explain the difference between absorption...Ch. 8 - Timing is the key in distinguishing between...Ch. 8 - The term direct costing is a misnomer. Variable...Ch. 8 - When inventory increases, will absorption-costing...Ch. 8 - Why do many managers prefer variable costing over...Ch. 8 - Explain why some management accountants believe...Ch. 8 - Prob. 7RQ Ch. 8 - Why do proponents of absorption costing argue that...Ch. 8 - Why do proponents of variable costing prefer...Ch. 8 - Which is more consistent with cost-volume-profit...

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

Solution Summary: The author explains why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing.

Explain the reason why the ending balance of finished goods inventory for year 1 is higher if company L is using absorption costing and variable costing.

Explain the reason why the ending balance of finished goods inventory for year 2 is same under both absorption and variable costing.

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

Calculate the declined amount of finished goods inventory during year 2 under absorption costing and variable costing.

Calculate the difference in the amount of declined finished goods inventory under absorption and variable costing, calculate the difference in the reported operating income for year 2 under absorption and variable costing, and compare both differences.

Explain whether the given relationship between the absorption and variable costing will always true at any balance sheet date.

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Chapter 8 Solutions