Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. chamiching makes hacksaw blades. inventory values

Chamiching makes hacksaw blades. Inventory values are determined using the first in, first out (FIFO)...

90.2K

Verified Solution

Question

Accounting

Chamiching makes hacksaw blades. Inventory values are determined using the first in, first out (FIFO) method. Production and sales data for the first three years appear below. Hacksaw blades Sold Produced Yr 1 18,000 22,000 Yr 2 25,000 23,000 Yr 3 37,000 35,000 Sales price Full cost Yr 1 $10.00 $6.00 Yr 2 $11.00 $6.60 Yr 3 $12.00 $7.60 For Chamiching, which of the following is true? In the first year, variable costs accounted for half of the full costs. Total fixed production costs increased each subsequent year by 20%, as a result of step-fixed costs and a general inflationary price increase. The variable cost of Yr 2 ending inventory is $6,887 The full cost of Yr 2 ending inventory is double the variable cost ending inventory There are 3,000 hacksaw blades in ending inventory The fixed cost per unit in Yr 3 is $2.72 None of the above

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students