Answer:
Entry to record adjustment:
COGS Dr $9.4m
Inventory Cr $9.4m
Explanation:
The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.
The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:
Entry:
COGS Dr $9.4m
Inventory Cr $9.4m
D) a work-study work program
Answer:
As a result of the price floor, price would increase. As a result, quantity demanded will decrease and the quantity supplied would increase.
Supply would exceed demand and as a result there would be an excess supply of fish.
As an alternative to the price floor, the government can subsidise the cost of fishing. This would reduce the cost of producing fish
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Answer:
$34,000
Explanation:
Accounting profit = Total revenue - Explicit costs
i.e Total revenue = $50,000
Explicit costs = $12,000 + $1,000 + $3,000 = $16,000
Therefore; $50,000 - $16,000 = $34,000.
Answer:
Grease payment
Explanation:
A grease payment is a payment made to a government official with the goal of expediting a transaction, process or request. It can be obtained through extortion from the government official, by voluntary contribution from the non-goverment official, or by mutual agreement, either explicit, or implicit.
In practice, it is essentially the same as a bribe, and the term could be considered a colloquial euphemism.
