Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

A company uses a perpetual inventory system. The following information relates to the production of widgets in June:- Direct materials: $4 per unit- Direct labor: $3 per unit- Variable manufacturing overhead: $2 per unit- Fixed manufacturing overhead: $1 per unitWhat is the standard cost per widget?

$10

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Verified step by step guidance

Step 1: Understand the concept of standard cost. Standard cost is the predetermined cost of manufacturing a single unit of product, including all direct and indirect costs associated with production.

Step 2: Identify the components of the standard cost from the problem. These include direct materials, direct labor, variable manufacturing overhead, and fixed manufacturing overhead.

Step 3: Add the costs for each component to calculate the standard cost per widget. Use the formula: Standard Cost = Direct Materials + Direct Labor + Variable Manufacturing Overhead + Fixed Manufacturing Overhead.

Step 4: Substitute the given values into the formula. Direct Materials = $4, Direct Labor = $3, Variable Manufacturing Overhead = $2, Fixed Manufacturing Overhead = $1.

Step 5: Perform the addition to find the total standard cost per widget. Ensure all components are included in the calculation to arrive at the correct total.