Answer:
the inventory should be recorded at $8,500
Explanation:
As we know that according to GAAP, the inventory should be recorded at a cost or net realizable value whichever is lower
So as per the question
Historical cost is $12,000
And, the net realizable value is
= Expected selling price - expected selling cost
= $9,000 - $500
= $8,500
So, the lower cost is $8,500
Hence, the inventory should be recorded at $8,500
Answer:
The answer is: If Orion wants to have $3,000 in two years, he must invest $2,572.02 today
Explanation:
To determine how much money Orion has to invest today in order to have $3,000 in two years, considering he will get an 8% compound interest rate, we can use this formula:
P = FV / (1 + r)²
Where:
P = $3,000 / (1 + 8%)²
P = $3,000 / 1.1664
P = $2,572.02
Answer:
Type I subsequent event
Explanation:
The reason is that there are two types of subsequent events which includes a recognizable event and a non-recognizable event. In the Recognizable event which is also known as type 1 subsequent events is the event that has occurred at the financial statement date and is concluded after the year end. So in this case, the event had occured at the financial statement date which the auditor and the company didn't knew about and has been concluded in the subsequent period.
Answer:
$6,655
Explanation:
Variable cost per bag = $3.70
Total fixed cost = $10,000
Unit selling price before further processing = $9.05
No of bags = 10,000
Contribution per bag = 9.05-3.7 = $5.35
Total revenue = 9.05*10,000= $90,500
Net income =90500-(10,000+37000 )= 43500
Incremental cost =2100
Incremental revenue( 10,000*8.05) + (3100*6.05)
80500 + 18755 = $99255
Net income = 99255 - (2100+47000)= 50155
Financial advantage = 50155-43500=6655
Surface area: 384.9ft (squared)
Volume: 538.8ft
