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maw [93]
4 years ago
10

CMN Inc. uses LIFO and has experienced increasing costs since its founding. CMN disclosed that the LIFO reserve (also known as t

he LIFO allowance) at the end of 2018 was $3 million. The balance sheet showed ending inventory of $17 million at the end of 2018. What would the ending inventory have been if CMN had always used FIFO?Multiple Choicea. $20 million.b. $17 million.c. $14 million.d. None of these answer choices are correct.
Business
1 answer:
Neporo4naja [7]4 years ago
7 0

Answer:

$20 million

Explanation:

The computation of the ending inventory if FIFO is used

= LIFO reserve + Ending inventory based on LIFO inventory

= $3 million + $17 million

= $20 million

We simply added the LIFO reserve and LIFO ending inventory so that FIFO ending inventory can be computed. Hence, we take all the items for the computation part.

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Goods that are partially completed by a manufacturer are a.work in process inventory b.materials inventory c.merchandise invento
baherus [9]

Answer:

a. work in process inventory

Explanation:

In Business, an inventory is a term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.

Simply stated, an inventory can be classified into three (3) main categories; finished goods, work in progress, and raw materials.

An inventory is recorded as a current asset on the balance sheet because it's primarily the most important source of revenue for a business entity.

Also, the three (3) main cost concept associated with an inventory are;

1. First In First Out (FIFO).

2. Last In First Out (LIFO).

3. Weighted average cost.

Goods that are partially completed by a manufacturer are work in process (WIP) inventory.

8 0
3 years ago
property has Gross Scheduled Income of $100,000. The vacancy rate and credit rate allowance is 3% whereas Operating expenses are
Ugo [173]

Answer:

The answer is "10.5\%"

Explanation:

Following are the Cap rate:

 = \frac{(Income \times (1 - vacancy\  rate) - operating \ expense)}{\text{purchase price of property}}

= \frac{(\$ 100,000 \times 0.97 - \$ 34,000)}{\$ 600,000}\\\\= \frac{\$ 63,000}{ \$ 600,000}\\\\= 10.5\%

8 0
3 years ago
__________ involves the review and evaluation of the records and processes that are used to prepare the organization's financial
lyudmila [28]

Answer:

this is a Financial audit

7 0
2 years ago
One of the best sources of precall information is a prospect's own salespeople because they empathize with the salesperson's sit
Ann [662]

Answer:

a. True

Explanation:

In the case when the information is precalled so here the sources that considered to be best should be the own salespeople as it would emphathize the situation of the sales person

So as per the given situation, the given statement is true

Hence, the option a is correct

Therefore, the second option is wrong

3 0
3 years ago
The local skydiving team is buying new parachutes. the team's coach has invited all team members to make recommendations, after
Sonja [21]

I guess the correct answer is consultative

The local skydiving team is buying new parachutes. The team's coach has invited all team members to  make recommendations, after which he will select the successful vendor. The skydiving team's buying  center has a(n) consultative organizational culture.

8 0
3 years ago
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