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2 years ago

How does inventory differ from other types of purchases and discuss what controls pertain specifically to inventory processes?

1 answer:

4 0

Inventory are the products which are directly involved in the manufacturing of a business. Inventory includes raw materials inventory, work in progress inventory and finished goods inventory.

In a merchandising business, inventory includes all the products available for use. There are inventories in the administrative section of the company also which is known as the supplies Inventory.

Purchases are a nominal account that forms part in the cost of goods sold. Purchases term is used in the manufacturing firm and is the raw materials needed in the production of their product, thus will also form part of the inventory account if there is a left over for it.

Inventory on the other hand can come from the purchases itself in terms of the raw materials.

There are many inventory control such as the following:

Conducting different semi annual inventory count to know the actual number of inventory in hand against the monitoring of the inventory

Maintaining security of the facility of the stockroom storage by having cctv and padlock of the room.

Checking the incoming and outgoing inventory based on the documents given in the store.

Proper segregation of duties must be there, the record keeper should not be the same person as the one holding the inventory.

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Entity B bought equipment for $240,000 on January 1, 2021. It estimated the useful life to be 3 years with no salvage value, and

mezya [45]

Answer:

Part 1

Revised depreciation expense = $32,000

Part 2

The entry to record depreciation expense :

Debit : Depreciation Expense $32,000

Credit : Accumulated Depreciation $32,000

Explanation:

Straight line method charges a fixed depreciation charge over the year of use of an asset.

Depreciation expense = (Cost - Salvage Value) ÷ Estimated Useful Life

2021

Depreciation expense = $80,000

2022

Old Depreciation expense = $80,000

New Depreciation expense = Depreciable Amount ÷ Remaining Useful Life

= ($240,000 - $80,000) ÷ 5

= $32,000

7 0

3 years ago

Suppose the current market price of corn is $3.75 per bushel. Your firm has a technology that can convert 1 bushel of corn to 3

Aleks04 [339]

Answer:

At 1.783 or more, the conversion yield better gain than sales the corn

Explanation:

The ethanol conversion become attractive if the cost for doing the conversion are lower than the sale revenue for the product.

total cost: raw materials + conversion cost

corn price: $ 3.75

conversion cost: $ 1.60

Total cost: $ 5.35

output: gallon of ethanol per bushel

3 gallons of ethanol per bushel

total cost / output = 5.35/3 = 1.783 cost per gallon

5 0

3 years ago

Identify each account as asset (a), liability (l), or equity (e).

posledela

Identify each account as Asset (A), Liability (L), or Equity (E)

A. Accounts Payable - liability

B. Cash - asset

C. Owners Capital- Equity

D. Accounts Receivable- asset

E. Rent Expenses - equity

F. Service Revenue - equity

G. Office Supplies - asset

H. Owners Withdrawal - equity

I. Land -asset

J. Salaries Expenses -equity

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3 years ago

At Rolce Technologies, the core design team of 10 employees has daily "stand-up" meetings. All the core design team members gath

4vir4ik [10]

Answer: rituals

Explanation: Rites and rituals, which also include habits and ceremonies, together shape the culture of an organization. A ritual is a series of activities that involve actions, words and things, performed in a locked away position and executed in a fixed sequence.

For example, an employee can eat lunch in the shared lunchroom rather than their desk as a form of habit, or spend five minutes after each meeting debriefing the team about what they learned.

Hence from the above we can conclude that the correct option is D.

8 0

3 years ago

The break-even in units sold will decrease if there is an increase in: a. unit sales volume. b. total fixed expenses. c. unit va

s2008m [1.1K]

Answer:

d. Selling Price

Explanation:

Break even point is calculated as $\frac{Fixed\ cost}{Contribution\ per\ unit}$

Thus, break even point in units only in two cases,

Fixed cost is reduced that is decreased,
Contribution per unit is increased.

Now, here the options are

a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.

b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.

c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.

d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.

Correct option is

d. Selling Price

7 0

3 years ago