Answer:
c. $ 95,000 $ 0
Explanation:
<u>Calculation of cost of land acquired</u>
For the purpose of recording of land acquired in the books of accounts, the accounting values of consideration paid shall be considered as per the generally accepted accounting principles as well as as per International accounting standard (IAS) - 16 'Property, plant and equipment'. Hence the land shall be recorded as per the following amounts:
Consideration paid in cash (A) = $ 5,000
Consideration in kind (land) (B) = $ 90,000 (Refer Note 1)
Total cost of new land (A+B) = $ 95,000
<em>Note 1</em>
Fair value is irrelevant for the purpose of capitalization of asset (IAS-16)
<u>Calculation of Gain/loss on disposal of land</u>
No gain/loss needs to be recorded as the new asset shall be recorded in terms of the book value of old asset (i.e. net impact is already taken into account during the exchange transaction)
Answer:
Preston has to make four phone calls to clients today. The call to Mr. Miller will take about an hour to complete, the call to Ms. Winnecuit will take about five minutes to complete, the call to Mr. Drudge will take about thirty minutes and the call to Mrs. Freich will take about fifteen minutes to complete. If all the calls are equally important, who should Preston call first?
From the analogy above, in order to maximize the time frame. The call to lesser clients should be prioritized before others, this means that Preston should place a call to Ms Winnecuit which will last for five minutes follow by Mrs Freich which will last for fifteen minutes follow by Mr Drudge which will last for thirty minutes and lastly to Mr Miller which will last for about an hour.
Prioritization comes in play to time frame of each call, the lesser minutes calls will not take too much time to be completed while the call with highest time frame comes last as a result of the time involved.
Explanation:
Answer:
b) $2,350
Explanation:
The computation of the cost of goods sold under the LIFO method is shown below:
Since there is 60 unit sold
So,
= Number of units purchase × price per unit + opening inventory remaining units × price per unit
= 50 units × $40 + 10 units × $35
= $2,000 + $350
= $2,350
hence, the cost of goods sold under the LIFO method is $2,350
Therefore the correct option is b) $2,350
Answer:
Using the weighted average method, the Equivalent units for material is:
= Units completed and transferred out + Equivalent closing material
= 375,000 + (97,000 units * 80% complete with respect to materials)
= 375,000 + 77,600
= 452,600 units
Equivalent units for conversion:
= Units completed and transferred out + Equivalent closing units with respect to conversion
= 375,000 + (97,000 * 30%)
= 375,000 + 29,100
= 404,100 units
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