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3 years ago

P19 - 104. in applying the lower of cost or market method to inventory valuation, market is defined as:

1 answer:

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lower-of-cost-or-market It is inconsistent because losses are recognized but not gains. b. It usually understates assets. c. It can increase future income. "market" in the lower-of-cost-or-market rule be more than estimated selling price in the ordinary course of business less reasonably predictable costs of completion and disposal. Designated market value is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin Lower-of-cost-or-market is most conservative if applied to individual items of inventory. the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory is to prevent overstatement of the value of obsolete or damaged inventories.

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Ainsley is a middle manager at a large, multinational corporation. She prefers to involve her subordinates in decision making an

lapo4ka [179]

Answer:

The above statement is false.

Explanation:

Max Weber claimed that if the staff actually did what they were told the company would do well.

He already presumed that large organizations would only be capable of functioning effectively if regulations and guidelines were developed, and that everyone accurately followed those regulations.

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3 years ago

Hull Company’s record of transactions concerning part X for the month of April was as follows.

olga55 [171]

Answer:1. $7720

2. $7945

3. $7758

Explanation: 1. First in First out method which means the first inventory to be purchased by company will be the first to be sold.

Total cost of Sales = Total number of units Sold * Total Cost of inventory sold

= 100units*$5+ 300units*$5.30+ 200units*$5.35 + 450units*$5.60

=$7720

Total units sold=1450 we started from first inventory which was the balance of inventory of 100 units downwards up to the 1450th unit sold that was purchased on the 26th of April by the company.

2. Last in first out method is where the last bought inventory is sold first.

Total cost of sales= Total number of units sold * Total cost of units sold =200units$*5.80+ 600units*$5.60+ 200units*$5.35+300units*$5.30+150units*$5.1

=$7945

Total units sold still 1450 but we calculated the cost from the last purchased unit from 30th April to the 1450th unit sold which was on the 12th of April.

3. Average Cost = (Sum of all costs/Total number of costs)* total units sold

= (($5+$5.1+$5.3+$5.35+$5.6+$5.8)/6)* 1450

=$7769.58

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3 years ago

The inventory of Cullumber Company was destroyed by fire on March 1. From an examination of the accounting records, the followin

maria [59]

Answer:

a. Merchandise lost by fire value = $20,760

b. Merchandise lost by fire value = $25,770

Explanation:

Net sales = $51,000 - $1,100

= $49,900

Net purchase cost = $31,000 + 1,200 - $1,500

= $30,700

a. Gross profit = $49,900 × 40%

= $19,960

Cost of goods sold = $49,900 - $19,960

= $29,940

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $29,940 = $20,000 + $30,700 - ending inventory

Ending inventory = $20,760

Merchandise lost by fire value = $20,760

b. Gross profit = $49,900 × 30%

= $14,970

Cost of goods sold = $49,900 - $14,970

= $34,930

Cost of goods sold = beginning inventory + Purchases - ending inventory

= $34,930 = $30,000 + $30,700 - ending inventory

ending inventory = $25,770

Merchandise lost by fire value = $25,770

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3 years ago

Which of the following is one result of international trade?

Reika [66]

The answer is "D. Trade creates new markets".

International trade is the trading of products and enterprises between nations. This sort of exchange offers ascend to a world economy, in which costs, or free market activity, influence and are influenced by worldwide occasions.

International trade enables us to grow our business sectors for the two merchandise and enterprises that generally might not have been accessible to us. It is the motivation behind why you can pick between a Japanese, German or American vehicle. Because of universal exchange, the market contains more noteworthy challenge and in this way progressively aggressive costs, which conveys a less expensive item home to the buyer.

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4 years ago

Read 2 more answers

Kelly Corp. barters with Ace Corporation for goods that are similar in nature and value. The value of the goods was $1,000. The

MArishka [77]

Answer:

B. $0

Explanation:

The International Financial Reporting Standards (IFRS) specifically Internal Accounting Standards (IAS) 18 on revenue specifically states that where there is a barter transaction that is the exchange of goods or services, the transaction will not be recognized as one generating revenue when the goods or the services being exchanged are similar in nature. If it is not recognized as a revenue generating transaction then no revenue will be recognized as well

Since Kelly Corp barters goods with Ace Corporation established to be similar in nature , then according to IFRS Kelly cannot recognize any income on the transaction.

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3 years ago