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Varvara68 [4.7K]
3 years ago
13

Iris Company has provided the following information regarding two of its items of inventory at year-end: There are 160 units of

Item A, having a cost of $18 per unit, a selling price of $22 and a cost to sell of $6 per unit. There are 110 units of Item B, having a cost of $48 per unit, a selling price of $54 and a cost to sell of $4 per unit. How much is the ending inventory using lower of cost or net realizable value
Business
1 answer:
maw [93]3 years ago
6 0

Answer:

$7,840

Explanation:

The inventory of Items A and B should be valued at the lower of cost and the net realizable value.

The cost is the invoice price at time of purchase ,while the net realizable value is the selling price less to sell

Products              Cost          Selling price cost to sell NRV    unit value

   A                         $18               $22                $6     $16             $16

   B                          $48              $54                $4    $50             $48

Item A is valued at $16 each i.e $16*160=$2,560

Item B is valued at $48 each i.e $48*110=$5,280

total value of inventory                             =$7,840

The ending inventory valued at the lower of cost or net realizable value is worth $7,840

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Answer:

Effect on income= -$22,000 decrease

Explanation:

Giving the following information:

Contribution margin $30,000

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Effect on income= avoidable fixed costs - contribution margin

Effect on income= 8,000 - 30,000

Effect on income= -$22,000 decrease

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Under Treasury Circular 230, which of the following actions of a CPA tax advisor is characteristic of a best practice in renderi
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Answer:

The correct answer is letter "B":  Establishing relevant facts, evaluating the reasonableness of assumptions and representations, and arriving at a conclusion supported by the law and facts in a tax memorandum.

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More accurate estimates and higher motivation are generally the result of using a(n) Blank______ budget. Multiple choice questio
katrin2010 [14]

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3 0
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Choate International plans to issue $15 million in 10-year bonds. They believe they can afford to pay $1,150,000 in interest to
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Answer:

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Required information Use the following information for the Exercises below. Skip to question [The following information applies
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Answer:

Follows are the solution to this question:

Explanation:

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(Bad Debts Expense recorded)  

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(Bad Debts Expense recorded)  

5 0
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