Answer:
Revenue could be of amount $33,836,000
Explanation:
As the selling price is not given in the question, only the cost of the inventory is given, So,
We assume that the Sales quantity is X and the Selling Price per unit be Y
Then,
Sales = X × Y ............... Equation (1)
Less : COSG = $33,836,000 ................ Equation (2)
Net Income = 1 - 2
If the selling price is equal to the cost of the inventory which is $33,836,000. So, the only revenue which is to be added is the amount of $33,836,000.
Note: It totally depend or grounded on the Sales value.
Answer:
In Barton and Barton Company's general journal, entry required include:
Debit Retained Earnings Account with $8.2 million
Credit Opening Inventory with $8.2 million
Being reversal of overstated inventory due to change from FIFO to Average cost method.
Explanation:
The debit entry to the Retained Earnings Account will reduce the balance by $8.2 million. The effect of overstating the closing inventory is overstatement of the net income because the cost of sales was understated as a result of the inventory overstatement.
The credit entry to the Opening Inventory reduces the balance to the new balance based on the average cost method of $23.8 million.
The FIFO cost method or First-In, First-Out method is an inventory costing method that assumes that goods that were bought first were the ones to be sold first. The inventory cost is therefore valued with the most recent quantity and cost price.
On the other hand, the Average Cost Method, also called the Weighted Average Cost Method, calculates the inventory cost by adding all the period's inventory and dividing it by the quantity for the period. This gives an average cost which is in turn used to multiply the quantity of inventory at the end of the period to obtain the inventory cost.
Both methods are estimates that produce different results and affect the reported net income differently. There is always the need for consistency in choosing the method to apply so that reported net income is not unduly distorted.
Answer:
Cost of hedging = $24,000
Explanation:
cost of hedging = 1,200,000 * ($0.80 - $0.82) = 1,200,000 * $0.02 = -$24,000
Since the actual forward rate was higher than th eexpected forward rte, the coampny lost money by hedging the operation. The cost of hedging the operation was $24,000.
Answer: Augmenting his income.
Explanation: Extra work means having an official fixed job and, in addition, after working hours, or in your free time (such as weekends), you dedicate yourself to other activities that can also generate income. Unlike what some people think, extra work does not need to be something completely different from what you usually do. Of course you can choose to formalize your hobby and earn money with it, but these tasks can also happen in other conventional work.
