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1 year ago

West Co. recorded the following inventory information during the month of February:

1 answer:

6 0

The correct option is C. The valuation of the cost of goods sold which is recorded in its book as $5,900 and stock available for sale is $3,900 under the FIFO method.

<h3>Why is the FIFO method used for Inventory Valuation?</h3>

FIFO will enable you to claim a higher average cost-per-piece on newer inventory, which can help you save money on taxes if your inventory costs are declining over time. Because it assumes that older products are no longer in use, FIFO does not necessitate as much documentation as LIFO.

Calculation Cost of Goods Sold (COGS) under FIFO Method:

COGS = 800 x 2 + 700 x 3 + 300 x 3 + 1300 x 1 =

COGS = $5,900

The calculation for Stock available for Sale:

Stock available for Sale = 700 x 1 + 800 x 4

Stock available for Sale = $3,900

Thus, the Cost of Goods Sold is $5,900, and the stock available for sale is $3,900 under the FIFO method.

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Ptarmigan Company produces two products. Product A has a contribution margin of $85.80 and requires 11 machine hours. Product B

natali 33 [55]

Answer:

Product A $7.80

Explanation:

Calculation to Determine the most profitable product assuming the machine hours are the constraint.

PRODUCT A PRODUCT B

Contribution margin per unit $85.80 $107.80

÷Machine hours 11 14

=Contribution margin per bottle neck hour

$7.80 $7.70

Based on the above calculation Product A is the most profitable because product A profit Amount of $7.80 is higher than that of product B.

8 0

2 years ago

The present value of cash flow will be greater if we compound less frequently holding the stated interest rate constant. a. true

Fittoniya [83]

The present value of cash flow will be greater if we compound less frequently holding the stated interest rate constant. true

<h3>What is interest rate constant?</h3>

A proportion that compares a loan's annual debt service to the sum of its principal is known as a loan constant. The annual debt service is divided by the total loan amount to determine a loan constant. Borrowers can compare the loan constants of several loans when looking for a loan before choosing one. The loan with the lowest loan constant will have reduced debt service obligations, resulting in a shorter length of time during which the borrower will pay less in interest and principal. Only loans with fixed interest rates are subject to loan constants; loans with variable interest rates are not.

A loan constant is a ratio that illustrates the annual debt service of a loan in relation to the entire loan principal.

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7 0

1 year ago

Marston acquired assets for $100,000. At the end of year 3, the assets had accumulated depreciation of $40,000. An impairment lo

MissTica

Answer:

(b)-Debit to loss on impairment of $12,000

Explanation:

As for the details in question,

The asset purchase price = $100,000

Accumulated depreciation = $40,000

Thus, book value = Purchase price - Accumulated depreciation = $100,000 - $40,000 = $60,000

Now, this has a fair market value = $48,000

Thus, loss of value to be recorded as impairment loss = $60,000 - $48,000 = $12,000

Since loss in value will decrease the value of asset, it will be debited against credit in fixed assets by $12,000

This, will represent book value = $48,000

Therefore, correct option is:

Statement B

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3 years ago

Which one of the government actions would most enhance efficiency in a free market, according to most economists? regulating pro

aleksklad [387]

Answer: 1. statement d

2. statement d

Explanation: This can be explained as follows :-

1.Government intervention should be done on those sectors that results in maximization of wealth. Private sector is the back bone of every economy's free market, thus, protecting private property is the correct option.

2. Issuing patent right to the inventor will result in monopoly by that particular producer and that too of a necessary commodity hence option d is correct.

3 0

3 years ago

The strength of the economy of singapore is based largely on its lack of corruption and generous government support for new busi

QveST [7]

Singapore really has only two neighbors:

Malaysia and
Indonesia.

It is politically correct to state that Malaysia and Singapore have a love-hate relationship. Malaysia's political leadership look down on Singapore.

<h3>How can Singapore be described?</h3>

Singapore, as a multicultural, multiethnic, multireligious secular meritocracy, is an insult to their Bumiputera policy's falsehood of Malay-based apartheid.

Malays and other races such as Ibans, Dayaks, Eurasians, and Kadazan are considered native races of Malaysia.

Despite having lived there for centuries, a Chinese or Indian is considered a "pendatang," or an immigrant, and is discriminated against.

It is to be noted that Singapore was compelled to leave Malaysia due to disputes, socioeconomic factors, and the inability of Lee Kuan Yew and Tunku Abdul Rahman to reach an agreement.

That kind of issue persists after half a century. Malay nationalist hardliners anticipated Singapore to fail without a hinterland and return to Malaysia, where they would accept their demands. That did not work out as planned.

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8 0

2 years ago