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3 years ago

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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Market equilibrium is: Select one: a. the point at which a nation reaches full employment b. the time period used to determine t

fenix001 [56]

Answer:So far we have learned to measure real GDP, but how do we end up with that real GDP? Of all of the different amounts of national income and price levels that might exist, how do we gravitate toward the one that gets measured each year as real GDP?

In short, it is the interaction of the buyers and producers of all output that determines both the national income (real GDP) and the price level. In other words, the intersection of aggregate demand (AD) and short-run aggregate supply (SRAS) determines the short-run equilibrium output and price level.

Once we have a short-run equilibrium output, we can then compare it to the full employment output to figure out where in the business cycle we are. If current real GDP is less than full employment output, an economy is in a recession. If current real GDP is higher than full employment output, an economy is experiencing a boom. If the current output is equal to the full employment output, then we say that the economy is in long-run equilibrium. Output isn’t too low, or too high. It’s just right.

Explanation: hope this helps

6 0

2 years ago

HUD, Co. had a beginning retained earnings of $29,825. For the year, the company had net income of $6,540 and paid dividends of

marissa [1.9K]

Answer:

$38,265

Explanation:

Beg RE = $29,825

Plus Net Income = $6,540

Minus Dividends = ($2550)

Plus New Stock = $4450

Ending RE = $38,265

6 0

2 years ago

here are seven firms in the automobile industry. The market shares of the firms are 34 percent, 21 percent, 17 percent, 9 pe

Lemur [1.5K]

Answer:

The answer is "Option 4".

Explanation:

The Herfindahl-Hirschman Index formula:

$HHI=s_{12} + s_{22} + s_{32} + s_{42} +........ + s_{n2}$

here sn is the firm n's share of the market proportion represented the society in general number instead of a decimal

Index Herfindahl-Hirschman:

$= (34)^2 + (21)^2 + (17)^2 + 92 + 82 + 62 + 52\\\\= 1156 + 441 + 289 + 81 + 64 + 36 + 25\\\\= 2092$

Index Herfindahl-Hirschman(Result of the merger, firms with profit margins of 6% and 5% provided market shares of respectively).

$= (34)^2 + (21)^2 + (17)^2 + 92 + 82 + 112\\\\= 1156 + 441 + 289 + 81 + 64 + 36 + 121\\\\= 2188$

The market with just an HHI of less than 1,500 is called a competitive industry, one on an HHI of 1,500 to 2,500 is called a moderately competitive store, and one on an HHI of 2,500 or higher is considered a highly potent store by us Justice department.

All businesses operate in a moderately crowded market, as well as a merger such as this reduces competition (increases chances of monopoly). Also as result, the Justice Dept may examine its merger but will most likely deny this because the Herfindahl-Hirschman index has risen.

8 0

3 years ago

In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken

bazaltina [42]

Answer:

C. completed from beginning inventory, started and completed during the month, and units in ending inventory

Explanation:

During the period, the work done is:

the last part of the beginning WIP

If BI is at 40% complete

During the period 60% is assign to this period cost

the started and complete, those count entirely, as they are finished.

and the equivalent work of the endind inventory

this is also work done during the period, so it should be accounted to assing cost into.

5 0

3 years ago

Production data: Pounds in process, May 1; materials 100% complete; conversion 90% complete 88,000 Pounds started into productio

Zarrin [17]

Answer:

1. materials = 569,000 units , conversion = 556,000 units

2. materials = $1.15 , conversion = $0.70

3. materials = $44,850 , conversion = $18,200 , total = $63,050

Explanation:

For this question, i will assume that the Weighted Average Cost Method is used since we do not have information on the specific method applied by this company.

Calculation of the equivalent units of production for materials and conversion.

1. Materials

Closing Work in Process (65,000 × 60%) = 39,000

Completed and Transferred to Finished Goods = 530,000

Equivalent units of production for materials = 569,000

2. Conversion Costs

Closing Work in Process (65,000 × 40%) = 26,000

Completed and Transferred to Finished Goods = 530,000

Equivalent units of production for materials = 556,000

Calculation of the cost per equivalent unit for materials and conversion

Remember :

Cost per equivalent unit = Total Costs ÷ Total Equivalent units

therefore,

1. Materials

Cost per equivalent unit = ($ 106,000 + $ 551,120) ÷ 569,000

= $1.15

2. Conversion Costs

Cost per equivalent unit = ($ 59,700 + $ 328,230) ÷ 556,000

= $0.70

Calculation of the cost of ending work in process inventory for materials, conversion, and in total

Materials ($1.15 × 39,000) = $44,850

Conversion Costs ($0.70 × 26,000) = $18,200

Total cost of ending work in process = $63,050

3 0

3 years ago