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adoni [48]
3 years ago
12

Q 6.20: Switzer, Inc. has 8 computers which have been part of the inventory for over two years. Each computer cost $600 and orig

inally retailed for $900. At the statement date, each computer has a net realizable value of $400. What value should Switzer, Inc., report for the computers at the end of the year?
Business
2 answers:
borishaifa [10]3 years ago
8 0

Answer:

$400 .Since inventory is valued at cost or market value(current replacement cost) whichever is lower .

Therefore value of inventory : $400*8=$3200

Explanation:

Zina [86]3 years ago
5 0

Answer:

$400

Explanation:

GAAP principle of Lower of Cost and Net realizable value requires to report the inventory as follow

Inventory Value

Lower of

  • Cost of Inventory
  • Net Realizable value of Inventory

In this question Computer was purchased for $600 and current Relalizable value is $400

Lower of

  • Cost $600
  • Realizable Value $400

Net Realizable value is lower, so, Switzer, Inc., report the computers for $400 at the end of the year.

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8 0
3 years ago
Woolsey Corporation, a U.S. company, expects to sell goods to a British customer at a price of 250,000 pounds, with delivery and
iragen [17]

Answer:

C. $10,000 positive.

Explanation:

The computation of the amount that should be included is shown below:

= (Option strike price - spot rate) × purchased put options

= ($2.17 - $2.13) × 250,000

= $10,000

As the spot rate is less than the strike price so automatically there is a gain of $10,000

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5 0
3 years ago
unlike other types of play, dramatic play is purely for fun and is not meant to be a learning experience. True or False
____ [38]

Answer:

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Explanation:

you are always learning something

5 0
3 years ago
What management function is production manager Cedric Stein using when he orders aluminum component parts (bumpers, drive trains
N76 [4]

Answer:

Purchasing

Explanation:

In the purchasing function, the company purchased the products and services from the manufacturer at a lesser cost and then sell the goods at higher prices in order to earn the profit.

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Therefore in the  given case, Cedric Stein orders aluminum component parts that are used in the Audi card production so here the purchasing function is used

5 0
3 years ago
explain the difference between a change in quantity demanded and a change in demand. Provide a real world example of a factor th
Zina [86]

Answer:

A change in quantity demanded is caused by a change in price only. That is, when price rises quantity demanded falls vise versa

A change in demand occurs when there is a shift in the demand caused by a change in other determinates of demand other than price such as change in income, change in taste and fashion, demographic changes etc.

Explanation:

Real word example of change in demand :

Changing Tastes or Preferences

From 1990 to 2020, the per-person consumption of chicken by Americans rose from 48 pounds per year to 85 pounds per year, and consumption of beef fell from 77 pounds per year to 54 pounds per year, according to the U.S. Department of Agriculture (USDA). Changes like these are largely due to movements in taste, which change the quantity of a good demanded at every price: that is, they shift the demand curve for that good, rightward for chicken and leftward for beef.

Simply put it this way> Change in quantity demanded : Price change, quantity demanded change

Change in Demand: Price doesn't change but quantity demanded changes as a result of change in other determinates of demand examples the change in preference

6 0
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