Answer:
True
Explanation:
As in the lean philosophy the production is based on specific customer demands, there are chances that when the order is received then the inventory required is not present and that the inventory is not held in hand.
Whereas in the traditional philosophy the production is based on the principle of budgets and sales forecast, accordingly the sales keeps on moving and the inventory is also held in hand prior to confirmation of order from customers.
Since there is no planning before the order is received from customers under lean, in emergency cases, or scarcity of resources, the inventory will fall short, and acquisition of inventory would not be easy.
Answer:
Net Purchases = Cost of goods sold - Decrease in Inventory
= $308,000 - $16,500
= $291,500
Cash paid to Suppliers = Net Purchases + Decrease in accounts Payable
= $291,500 + $13,500
= $305,000
The summary entry is as follows:
Merchandise Inventory A/c Dr. $291,500
Accounts payable A/c Dr. $13,500
To cash $305,000
(To record the amount of cash paid to merchandise suppliers during 2018)
Answer:
B
Explanation:
The Lower of Cost or Market Value Applies to the closing inventory and should be value at $103,700 Cost, which is the lower.
Answer:
d. $73,778.50
Explanation:
Variable Cost = $11.07 per unit x 5,150 units = $57,010.50
Total Cost = $130,789
Fixed Cost = Total Cost - Variable Cost
Fixed Cost = $130,789 - $57,010.50
Fixed Cost = $73,778.50
Since Depreciation is the Fixed Cost and we have been given the Total Cost of the Project, so the Depreciation is already included in the Fixed Cost.
Hence Total Fixed Cost is equal to $73,778.50.
