It is December 31, the end of the year, and the controller of Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before any year-end adjustments, reports the following data: Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $425,000 Historical cost of ending inventory, as determined by a physical count. . . . . . . . . . . . . 55,000 determines that the current replacement cost of ending inventory is . Show what should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.
Answers
Answer:
Inventory will be reported on the Statement of Financial Position / Balance Sheet at $43,000.
Cost of Goods Sold will be reported on the Income Statement / Statement of Profit and Loss at $455,000
Explanation:
Hie, I have attached the full question as images below
When applying the lower-of-cost-or-market (LCM) rule to inventories, inventories are valued at the amount whichever is lower between the Historical Cost of Inventory and the Net Realizable Value of Inventory (Estimated amount after sale).
Where,
Historical Cost of Inventory = $58,000
Net Realizable Value of Inventory = $43,000
Therefore
Inventories will be valued at $43,000 which is lower. The write down of Inventory of $15,000 ($58,000 - $43,000) will increase the Cost of Goods Sold
Thus, the new Cost of Goods Sold will be $455,000 ($440,000 + $15,000)
Related Questions
Both __________-__________, __________-__________ and __________-__________, __________-__________ methods of inventory valuation are assumptions as to the flow of costs.
Answers
Answer: First-In, First-out; Last-in, First-out
Explanation:
First-In, First-out(FIFO) and Last-in, First-out(LIFO) are both methods of inventory valuation that are used to assume the cost of inventory such that Cost of Goods sold can be calculated.
FIFO works by assuming that the oldest inventory purchased by the company is the one that was sold first while LIFO works by assuming that the newest inventory is sold first.
Using FIFO therefore will result in lower inventory costs because it is using old prices as opposed to LIFO which would reflect the increase in inventory prices as it is using recent prices.
The U.S. has accused China of artificially deflating the value of their currency. What would be the motivation for the Chinese to pursue such a policy
Answers
Answer: Cheaper exports
Explanation:
A large part of the Chinese economy is dependent on the foreign trade it initiates with the rest of the world. Having a weak currency can aid that.
Export prices are quoted in the currency of the country doing the exporting so if their currency is weaker relative to a country they are exporting to, their goods will be cheaper in that market which will make people want to buy their goods more.
This is why China would deflate its currency. Having a weaker currency means their exports are cheaper which will increase the amount of it bought.
how does the analysis for the supplier position and supplier preferencing model affect how a purchasing manager plans to do business with suppliers
Answers
Answer: The supplier position model aids the organization to rate their supplies based on the amount of spent when considering how and who it was supplied through
Explanation:
The supplier position model aids the organization to rate their supplies based on the amount of spent when considering how and who it was supplied through. It also gives a clue to the susceptibility level and the level of vulnerability that the business would be exposed to when the supplier fails.
In summary, it affects how a getting manager plans to try and do business with suppliers.
A student attending a class in a public high school is a...
1. Worker
2 Consumer
3 Citizen
Answers
Answer:
3
Explanation:
If I am wrong I am sorry.
Answer:
3 I guess
Explanation:
hope its t
right
A credit entry was recorded for unearned revenue and a debit for cash. What does this entry indicate?
Answers
Answer:
This means that there is an increase in cash(cash has been collected). And for the unearned revenue which is a liability, there is an increase in the liability
Explanation:
This means that there is an increase in cash(cash has been collected). And for the unearned revenue which is a liability, there is an increase in the liability.
Note: Debit side increases asset(cash) and expenses while credit side decreases liability,income and equity.
Credit side decreases asset(cash) and expenses while debit side increases liability,income and equity.
The beginning inventory of BG Action Figures is understated by $7 million at December 31, 20x8. What is the effect on 20x8 cost of goods sold? Group of answer choices
Answers
Answer: Understated by $7 million
Explanation:
Cost of goods old is calculated by deducting the closing balance of inventory from the Opening balance and the Purchases for the period in the manner:
Cost of Goods sold = Opening inventory + Purchases - Closing stock.
Going by the formula, if the opening inventory is understated by $7 million, the cost of goods sold will be understated by the same amount because opening inventory adds to Cost of goods sold.
________ is the process of identifying suitable candidates and encouraging them to apply for job openings in the organization.
Answers
Answer:
Recruitment
Explanation:
Companies or organizations goes through the process of looking for candidates that best suites the vacant position in their organization ; hence encouraging such candidates to apply.
When there are openings in an organization, usually, lots of people would like to fill in such opening , but as an organization with a focus for hiring best hands, it is normal for them to ask for candidates that are qualified for such vacant position. The process of identifying suitable candidates and encouraging them to apply for a vacant post or job openings in an organization is called recruitment.
A $1,000 par value 12-year bond with a 9 percent coupon rate recently sold for $980. The yield to maturity is
Answers
Answer:
0.92%
Explanation:
To find the answer, we use the Yield to Maturity Formula (YTM):
YTM = [C + (F-P)/n] / [(F+P)/2]
Where C is coupon, F is face value or par value, n is years to maturity, and P is price.
now we plug the amounts into the formula
YTM = [90 + (1,000-980)/12] / [(1,000+980)/2]
YTM = 0.0092
YTM = 0.92%
So the YTM of this bond is only 0.92%, which is a very low YTM, typical of very safe securities like government bonds.
Would tax the increment in value as goods move through the production and manufacturing stages to the marketplace. b.Is a type of consumption tax. c.Would not require individuals to file returns. d.Would increase the number of deductions available to individuals. e.None of these choices are correct.
Answers
Answer:
e.None of these choices are correct.
Explanation:
The flax tax system means the tax system that impose the similar level of tax for each and every household ignoring the income bracket Also it does not provide any kind of deduction or exemptions. It is necessary to file the tax. It is not a consumer tax.
So according to the given situation the last option is correct
The same is considered
Management's assessment of the design and operation of the company's internal controls over financial reporting should be:
Answers
Answer:
Management's assessment of the design and operation of the company's internal controls over financial reporting should be:
integrated.
Explanation:
A company's assessment of internal controls over financial reporting should be integrated to focus on the effectiveness of internal controls and the reliability of the financial statements. The effectiveness of internal controls reduces the risk of fraudulent activities by all internal parties. Similarly, the reliability of the financial statements will ensure public confidence and engender unbiased, error-free, and faithful representation of financial performance and position to aid decision making by market participants.
Nor Corporation borrowed money using a discounted note at 94 with a stated 6% interest rate and a face amount of $400,000. What is the effective rate of interest on the debt
Answers
Answer:
the effective rate of interest on the debt is 6.38%
Explanation:
The computation of the effective rate of interest on the debt is shown below:
Effective rate of interest is
= ($400,000 × 6%) ÷ ($400,000 × 0.94)
= $24,000 ÷ $37,600
= 6.38%
Hence, the effective rate of interest on the debt is 6.38%
It could be determined by applying the above formula so that the correct rate could come
Precision Aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. What was the firm's ROE
Answers
Answer: 16.88%
Explanation:
Going by the Dupont 3 step method to calculate Return on Equity, the formula for ROE is:
ROE = Net Profit Margin * Assets turnover * Equity Multiplier
= 6.25% * 1.5 * 1.8
= 0.16875
= 16.88%
Cost per equivalent unit for Material Q under the weighted-average method is calculated to be: $5.65. $2.30. $4.60. $3.00. $2.75.
Answers
Answer:
$3.00
Explanation:
Calculation for the Cost per equivalent unit for Material Q under the weighted-average method
First step is to calculate the Units transferred
Units transferred= 28000 + 72000 - 16000
Units transferred= 84,000
Second step is to calculate Equivalent units of material P
Equivalent units of material P= 84,000 + 16000
Equivalent units of material P= 100,000 Units
Now let calculate the Cost per Equivalent Units
Cost per Equivalent units of Material P
Beginning WIP Inventory Cost $120,000
Add Cost incurred during period $ 180,000
Total Cost to be accounted for $ 300,000
($300,000+$120,000)
÷Total Equivalent Units 100,000
=Cost per Equivalent Units $3.00
($300,000÷$100,000)
Therefore the Cost per equivalent unit for Material Q under the weighted-average method will be $3.00
If a firm is following the cost leadership strategy, and overhead accounts are complex, then the: Firm should attempt to collect only material and labor costs. Firm should use a process costing system. Firm can use either a project or job costing system. Traditional volume-based job costing will not usually provide the needed cost accuracy. Only recourse is to install a hybrid costing system.
Answers
Answer:
Traditional volume-based job costing will not usually provide the needed cost accuracy.
Explanation:
Cost leadership strategy basically means that the company will try to sell its products and services at the lowest possible price. This should increase total sales volume, but in order to be profitable, the production and operational costs must be very low. Actually, the company needs to continuously find ways to keep their costs under control or decrease them if possible.
above is a trading profit and loss with the balance sheet question
pls I need an urgent solution to this
Answers
Due to a pre-existing contract, Recycle America Inc. has the opportunity to acquire 10,000 pounds of scrap aluminum and 2,500 pounds of scrap lead for $10,750. If the current market price for scrap aluminum is $0.83 per pound and the current market price for lead is $1.06 per pound, then the added benefit (cost) to you if you acquire this metal is:
Answers
Answer:
The added benefit is $200.
Explanation:
Amount on the pre-existing contract = $10,750
Total current market price for scrap aluminum = Pounds of scrap aluminum to purchase * Current market price of scrap aluminum per pound = 10,000 * $0.83 = $8,300
Total current market price for scrap lead = Pounds of lead aluminum to purchase * Current market price of scrap lead per pound = 2,500 * $1.06 = $2,650
Added benefit (cost) = Total current market price for scrap aluminum + Total current market price for scrap lead - Amount on the pre-existing contract = $8,300 + $2,650 - $10,750 = $200
Since the amount is positive which indicates that the addition of total current market price for scrap aluminum and total current market price for scrap lead is greater the amount on the pre-existing contract, the added benefit is therefore $200.
What is traditionalist account? Give an example.
Answers
Answer:
in folklore, a narrative containing information about actual persons and events. Originating from the tales of eyewitnesses, the traditional account departs from its original factual basis when retold and becomes subject to free poetic interpretation.
g A debit is used to record which of the... A debit is used to record which of the following: Multiple Choice A decrease in an asset account. A decrease in an expense account. An increase in a revenue account. An increase in the common stock account. An increase in the dividends accoun
Answers
Answer:
An increase in dividends account
Explanation:
In accounting, a debit is used to record an increase in asset, an increase in expense and a decrease in liability.
With regards to the above, the correct option is an increase in dividends account because dividend is a current asset hence a debit records an increase in assets. Dividend is the returns paid to an investor or shareholder who invest or buys shares in a company. It is the reward paid to an investor for investing in a company.
Benjamin and Amelia Hopkins have been married since 2016. Benjamin is a U.S. citizen with a valid Social Security number. Amelia is a resident alien with an Individual Taxpayer Identification Number (ITIN). They elect to file Married Filing Jointly. Benjamin worked in 2020 and earned wages of $25,000. Amelia worked part-time and earned wages of $15,000. They have two children: Harper, who is 9 years old, and Evelyn, who is 12 years old. Both children were supported by their parents all year. Harper is a U.S. citizen and has a valid Social Security number. Evelyn is a resident alien and has an ITIN. Benjamin, Amelia, Harper, and Evelyn lived together in the U.S. all year 7. Which credit(s) can the Hopkins claim on their 2020 tax return
Answers
Answer:
Benjamin and Amelia Hopkins
The Hopkins can claim on their 2020 tax return child tax credit of $2,000 for Harper only.
Explanation:
a) Data and Calculations:
Benjamin and Amelia Hopkins = Married and Filing Jointly
Benjamin = a U.S. citizen with a valid Social Security number
Amelia = a resident alien with an Individual Taxpayer Identification Number (ITIN)
Benjamin's 2020 earned wages = $25,000
Amelia's 2020 earned wages = $15,000
Total gross income = $40,000
Dependent children = Harper, 9 and Evelyn, 12
Harper = a U.S. citizen with a valid Social Security number (SSN)
Evelyn = a resident alien and has an ITIN
b) Benjamin and Amelia cannot claim the child tax credit for Evelyn since she does not have the SSN even though she has an ITIN. They can claim for Harper, who has an SSN. Harper is a qualifying child and eligible for the child tax credit (CTC) of $2,000 per child.
Every year, Shawna Stuart, the Director of Sustainability at Academic University, sees students throwing away perfectly good furniture and household items when they get ready to leave the dorms. And even though Academic U is considered to be one of the best schools in the country, 30% of the people in its surrounding communities earn poverty-level wages. Shawna knows that there must be some way to get all those chairs, couches, tables, and kitchen goods to people who really need them, but she needs some help in figuring out how to do it. Fortunately, you are the president of your school’s Business Honor Society, and your group wants to create a new non-profit organization this year. Shawna’s dilemma is perfect for your team, and together, you decide to create a new organization, Share Your Stuff.
Today, you are meeting with your team of four students, Shawna, and Alfonso Alvarez, the Store Manager for your local Goodwill store. You want to do some planning for the upcoming year. First on the agenda, the group agrees to create a strategic goal for the organization.
Which of the following is a question that you should ask during the development of strategic goals for the organization?
a. Should our company focus more on giving things away, or on selling things for a reduced price to those in need?
b. Last year, the Office of Sustainability collected 75 usable couches from students, but they were only able to give away 25 of them. What can Share Your Stuff do to give away more couches this year?
After some discussion, the group agrees that they want to create an ongoing, sustainable organization that eliminates at least 50,000 pounds of waste and raises at least $10,000 to pay for organizational expenses. Now that the team has a good idea for a strategic goal, it is important for them to identify a strategic plan that can be used to achieve the goal.
What time-frame should the group consider for this plan?
a. Short-term (One year or less)
b. Long-term (Five years or more)
Answers
Answer:
1. The question that you should ask during the development of strategic goals for the organization is:
a. Should our company focus more on giving things away, or on selling things for a reduced price to those in need?
2. The time-frame that the group should consider for this plan is:
b. Long-term (Five years or more)
Explanation:
A strategic plan is made up of the organization's mission, vision, and values, as well as its long-term goals. These are backed up with the action plans for attaining the long-term goals. A strategic plan should involve the whole of the organization and remain futuristic. It does not concentrate on short-term objectives. Instead, a strategic plan concentrates on long-term goals with its duration period lasting five years or more.
The Production Order Quantity model in inventory management A. results in larger average inventory than an equivalent EOQ model B. uses Ordering Cost, not Setup Cost, in its formula C. relaxes the assumption of known and constant demand D. is appropriate when units are sold/used as they are produced
Answers
Answer: D. is appropriate when units are sold/used as they are produced
Explanation:
The economic production quantity model is sometimes referred to as the EPQ model and it is used to know the amount of goods or services that a company should order so that the total inventory costs can be reduced.
From the options given, it should be noted that the economic production order quantity is appropriate when units are sold/used as they are produced.
Therefore, the correct option is D.
A benefit to the sellers in allowing customers to use credit cards is________. Group of answer choices to avoid having to evaluate a customer's credit standing for each sale to lessen the risk of extending credit to customers who cannot pay to increase the speed of receipt of cash from the credit sale all of the options are reasons for credit card use
Answers
Answer: All of the options are reasons for credit card use
Explanation:
By using credit cards to facilitate sales, sellers do not need to evaluate a customer's credit standing for each sale because the credit card pays.
By extension, the seller would not have to worry about extending credit to less creditworthy customers because this risk is passed on to the credit card company.
Using credit cards also increases receipt of cash from the sale because the credit card actually pays the seller.
Think about a tradeoff associated with taking college classes and pursuing a degree. What kinds of things do you trade off to take classes and do homework
Answers
Answer:
time and money
Explanation:
The two main general tradeoffs that you're making are time and money. You are using your valuable time pursuing that degree as well as spending money on tuition and other expenses. This therefore, becomes an opportunity cost since you could have spent that time and money doing other things such as travelling to see the world, creating a business, investing, or even learning something else. Anything that you could think of would be an opportunity cost of deciding to use your time and money to pursue that degree.
A loan is amortized over five years with monthly payments at an annual nominal interest rate of 9% compounded monthly. The first payment is 1000 and is to be paid one month from the date of the loan. Each succeeding monthly payment will be 2% lower than the prior payment. Calculate the outstanding loan balance immediately after the 40th payment is made.
Answers
Answer:
$7,112.73
Explanation:
We can use the financial calcualtor and some formulas or use the easy way and use excel goal seek.
We contruct the table and find the value of the principal cell that makes the principal after 60 payment zero with payment of $1,000 decreasing 2% each month
the following is made:
A1 period
1 to 60
B1 couta
1,000 x (power(0.98;period cell)
C1 interest
previous principal x 9/1200
D1 amortization B1 - C1 that is installment less interest
E1 principal: previous principal - current period amortization
--loan schedule is attached to provide more help--
Hyde's Headphones sells deluxe headphones for $75 each. Unit variable expenses total $45. The breakeven sales in units is 2,400 and budgeted sales in units is 4,200. What is the margin of safety in dollars
Answers
Answer:
$135,000
Explanation:
Calculation for What is the margin of safety in dollars
First step
2,400 x $75
= $180,000
4,200 x $75
= $315,000
The margin of safety $315,000 - $180,000
The margin of safety = $135,000
Therefore the margin of safety in dollars is $135,000
On February 1, 2017, Pat Weaver Inc. (PWI) issued 9%, $1,500,000 bonds for $1,800,000. PWI retired all of these bonds on January 1, 2018, at 105. Unamortized bond premium on that date was $157,500. How much gain or loss should be recognized on this bond retirement
Answers
Answer:
the gain on retirement bond is $100,000
Explanation:
The computation of the gain or loss recognized on the bond retirement is shown below;
= Book value - paid at redemption
= ($1,500,000 + $157,500) - ($1,500,000 × 105%)
= ($1,657,500) - ($1,575,000)
= $100,000
hence, the gain on retirement bond is $100,000
The same is to be considered and relevant too
The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. Is the forward rate at a discount or a premium, and by what percentage
Answers
Answer:
discount; 1.8%
Explanation:
Calculation for the forward rate using this formula
forward rate=(F/S) - 1
Let plug in the formula
forward rate= ($1.60/$1.63) - 1
forward rate= -1.8 percent.
Therefore The forward DISCOUNT is 1.8 percent.
The forward rate at a discount or a premium:
Formula :
Forward rate=(F/S) - 1
Forward rate= ($1.60/$1.63) - 1 Forward rate= -1.8 percent.Therefore, the forward discount is 1.8 percent.
Learn more :
https://brainly.com/question/20630008?referrer=searchResults
The cost of sales visits is a: Customer unit-level cost. Distribution-channel cost. Customer-sustaining cost. Sales-sustaining cost. Customer batch-level cost.
Answers
Answer:
Customer-sustaining cost
Explanation:
Cost of sales visits are costs associated with sales efforts. They can include direct labour, overheads, and direct materials.
This is regarded as a consumer sustaining cost because it is incurred in service to the customer.
Sales visits along with travelling cost are a way to ensure customer is satisfied and keeps coming back for more products.
Customer sustaining activities enables a business more effectively serve the customer with a view of maintaining their loyalty.
Reinhardt Furniture Company has 40,000 shares of cumulative preferred 2% stock, $150 par and 100,000 shares of $5 par common stock. The following amounts were distributed as dividends: Year 1 $70,000 Year 2 200,000 Year 3 320,000 Determine the dividends per share for preferred and common stock for each year. If an answer is zero, enter '0'. Round all answers to two decimal places. Year 1 Year 2 Year 3 Preferred stock (Dividends per share) $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Common stock (Dividends per share) $fill in the blank 4 $fill in the blank 5 $fill in the blank 6
Answers
Answer:
Reinhardt Furniture Company
The dividends per share for preferred and common stock for each year:
Year 1 Year 2 Year 3
Preferred $3.00 $3.00 $3.00
Common stock $0 $0.30 $2.00
Explanation:
a) Data and Calculations:
Cumulative preferred 2% stock = 40,000 shares
Cumulative preferred 2% share capital = $6,000,000 ($150 * 40,000)
Common stock = 100,000 shares
Common stock share capital = $500,000 ($5 * 100,000)
Cumulative preferred 2% annual dividend = 2% of $6,000,000 = $120,000
Total dividends Preferred dividends Common dividends
Amount distributed:
Year 1 $70,000 $70,000 ($50,000) $0
Year 2 200,000 $170,000 $30,000
Year 3 320,000 $120,000 $200,000
b) Dividend per share for preferred stock is $120,000/40,000 = $3.00 per annum. This is the amount of dividend per share because the shares are cumulative. The holders will always get paid at the next period when enough dividends are declared. For the common stock, the dividend per share depends on the actual dividends distributed to the holders, divided by 100,000 shares.
Sunland Company purchased a heavy-duty truck on July 1, 2017, for $29,400. It was estimated that it would have a useful life of 10 years and then would have a trade-in value of $5,880. The company uses the straight-line method. It was traded on August 1, 2021, for a similar truck costing $41,160; $15,680 was allowed as trade-in value (also fair value) on the old truck and $25,480 was paid in cash. A comparison of expected cash flows for the trucks indicates the exchange lacks commercial substance. What is the entry to record the trade-in
Answers
Answer:
Dr Trucks (New) $41,160
Dr Accumulated Depreciation $9,604
Dr Loss on Disposal $4,116
Cr Cash $25,480
Cr Trucks (Old)$29,400
Explanation:
Preparation of the Journal entry to record the trade-in
Dr Trucks (New) $41,160
Dr Accumulated Depreciation $9,604
($29,400-$5,880*49 months/120 months)
Dr Loss on Disposal $4,116
($29,400-$9,604-$15,680)
Cr Cash $25,480
Cr Trucks (Old)$29,400