Answer:
Explanation:
In this question, we apply the lower of cost or market (LCM) rule which is shown below:
For Product 1
The Cost is $20
And, the market value = Selling price - selling cost - normal profit margin
= $40 - $6 - $5
= $29
So, the lower value would be $20
For Product 2
The Cost is $90
And, the market value = Selling price - selling cost
= $120 - $40
= $80
So, the lower value would be $80
For Product 3
The Cost is $50
And, the market value = Selling price - selling cost - normal profit margin
= $70 - $10 - $12
= $48
So, the lower value would be $48
In the product 2, the replacement cost is 85 and the market value without considering the normal profit margin is $80 which is less than the replacement cost that's why we do not take the normal profit margin
Answer:
$267
Explanation:
Calculation for the amount of accrued interest on December 31, 2015
Accrued interest=20,000 x 8% x 60 days/360 days
Accrued interest= $267
Note that November 1, 2015 to December 31, 2015 will gives us 60 days while 360 days represent the number of days in a year
Therefore the amount of accrued interest on December 31, 2015 will be $267
Answer:
<h2>Assembly Line</h2>
1. Probability that a unit ends up in rework = Probability of defect in 20 stations multiplied by the probability of catching defects = 0.8%(1% x 80%) = 0.008
2. Probability that a defective unit is shipped = Probability of defective units during inspection plus Probability of defective units during rework = 25% (20% + (100-95%)) = 0.25
Explanation:
a) Probability of defect in 20 stations = 0.5% x 20 = 1%. Each station has a 0.05%
b) Probability of defective units during inspection = 20% (100% - 80)
c) Probability of defective units during rework = 5% (100% -95)
c) Probability is the likelihood or chance of an event occurring. Divide the number of events by the number of possible outcomes. This will give us the probability of a single event occurring.
Divide 5940 between x, y and z in such a way
that x has twice as much as y, who has half as much as z.
How much does each receive?
x + y + z = 5,940
x = 2y, 2y = z
y = 1,188
x receives 2,376, y receives 1,188 and z receives 2,376.
