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saveliy_v [14]
3 years ago
11

Explain what lower of cost or market means in regards to reporting merchandise inventory on the balance sheet.

Business
1 answer:
Degger [83]3 years ago
4 0

Answer and Explanation:

Inventory is an asset and is posted on the asset side of the balance sheet. As per accounting standards regarding inventory valuation, it can be either valued at historical cost or at market price, whichever is lower.

Historical cost is the cost at which asset was acquired. Market price is the price which would be received if the asset is replaced as on the date on which balance sheet is prepared. Inventory is valued at lower of the above mentioned costs.

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Shore Company reports the following information regarding its production cost. Units produced 36,000 units Direct labor $ 31 per
Sedaia [141]

Answer:

$73.86 per unit

Explanation:

The computation of the cost per unit under the absorption costing is as follows

= Direct material per unit + Direct labor per unit + variable overhead per unit + fixed overhead per unit

where,

Variable overhead cost per unit

= $288,000 ÷ 36,000 units

= $8 per unit

And, the fixed overhead cost per unit is

= $102,920 ÷ 36,000 units

= $2.86 per unit

So the cost per unit is

= $32 + $31 + $8 + $2.86

= $73.86 per unit

3 0
3 years ago
A company that packages and distributes fruit for on-the-go lunches has established a differentiation. they are packaged in such
SSSSS [86.1K]

The correct answer is forward integration. Forward integration is being defined as a business strategy by which it is associated with the vertical integration of where business activities are being expanded by means of including the control of the direct distribution or the supply of the products of the company.

6 0
3 years ago
What is the difference between real property and real estate...? real property consists of the land, while real estate consists
enyata [817]

Answer:

Real property consists of the land, land rights, and anything permanently attached to the land, while real estate consists of a structure attached to the land

Explanation:

Real estate refers to land that has a physical existence and the resources, structures are attached to it also it expands with respect to the rights of ownership and usage

While on the other hand the real property comprises fo land, rights of the land, and the thing that is permanently attached with respect to the land

Therefore the last second option is correct

6 0
3 years ago
Which of these qualify as variable expenses? Check all that apply
emmasim [6.3K]
The monthly groceries and the clothing purchases qualify as variable expenses. Variable expenses are expenses that can change in relation to your product or service usage such as fuel consumption<span>. The monthly groceries and the clothing purchases expense can change. It depends on how you spend your money.</span>
5 0
3 years ago
Read 2 more answers
Suppose that the owner of a smartphone monopoly hires you to determine whether his firm has made the profit-maximizing number of
enot [183]

Answer:

A. January 2016

B. May 2016

C. June 2016

Explanation:

Req. A

From the data table above, it is easy to understand that only 10,000 mobile phones were sold in the month of January.

Req. B

From the information above, the highest sales level was in the month of May with a 12,000 smartphones.

Req. C

We know, a monopolist maximizes its profit when marginal revenue equals to the marginal cost. MR = MC.

In that case, two months had equal marginal revenue = marginal cost, i.e., February and June.

According to the maximizing rule, at which point there are a high number of sales and MR = MC, that sales point is considered as maximizing profit.

Therefore, in the month of June, the sales were high with 11,000 smartphones. Hence, June was the firm's maximizing profit.

4 0
4 years ago
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