<span>profit-and-loss statement</span>
When a product is recycled back into almost the same product it's called 'reuse.' There are three R's - reduce, reuse, and recycle. When a product, such as paper, is recycled and made again into paper or a paper product, this is called reuse.
The answer to the given situation is "the result of this oversight is that the liabilities are understated".
We can define understated as if someone say to you that your account is understated, it means that either the amount is incorrect or the amount is too small or it is less than the actual or true amount. In the given case the entry was not made due the understatement of liabilities.
Answer:
Value of closing inventory = $25771.04
Explanation:
To calculate the value of ending inventory under a periodic average cost method, we will calculate the average price per unit of inventory at the end of the month. To calculate the average price per unit, we simply divide the total cost of the inventory by the total number of units for the month.
Average cost per unit = Total cost of all units for the month / Total units available for the month
<u />
<u>Total cost of all units:</u>
Beginning inventory (485 * 66) 32010
Purchase 1 (725 * 69) 50025
Purchase 2 (364 * 71) <u> 25844</u>
Total 107879
<u>Total Units</u>
Beginning Inventory 485
Purchase 1 725
Purchase 2 <u>364</u>
Total 1574
Average cost per unit = 107879 / 1574
Average cost per unit = $68.54
Units of closing inventory = 1574 - 1198 = 376 units
Value of closing inventory = 376 * 68.54
Value of closing inventory = $25771.04
Answer:
$5,360
(not given in the options)
Explanation:
Depreciation is the systematic allocation of cost to an asset based on estimates. It is given as
Depreciation = (cost - salvage value)/useful life
When originally purchased, a vehicle costing $23,040 had an estimated useful life of 8 years and an estimated salvage value of $1,600
Annual depreciation = ($23,040 - $1,600)/8
= $2,680
After 4 years
Accumulated depreciation = 4 × $2,680
= $10,720
The net book value then
= $23,040 - $10,720
= $12,320
Since the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value
New depreciation = ($12,320 - $1,600)/2
= $5,360
The depreciation expense in year 5 equals $5,360
