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anyanavicka [17]
3 years ago
10

Company had 200 units of inventory on hand at the end of the year. These were recorded at a cost of $12 each using the last-in,

first-out (LIFO) method. The current replacement cost is $10 per unit. The selling price charged by Sandra Company for each finished product is $15. In order to record the adjusting entry needed under the lower-of-cost-or-market rule, the Cost of Goods Sold will be:
Business
1 answer:
Georgia [21]3 years ago
8 0

Answer:

Debited by $400

Explanation:

Calculation for the Cost of Goods Sold

Using this formula

Cost of Goods Sold= Inventory on hand*(Cost-Current replacement cost)

Let plug in the formula

Cost of Goods Sold=200 units * ($12 - $10)

Cost of Goods Sold= 200 units*2

Cost of Goods Sold = $400 Debited

Therefore the Cost of Goods Sold will be:$400 Debited

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The production possibilities model illustrates an inverse relationship between two goods or services because
nikklg [1K]

Answer:

production of different types will compete for limited resources.

Explanation:

           The production possibilities model is also known as the Production–possibility frontier. It is the visual model of efficiency and scarcity. It provides the concept of how the economy can change things by using two goods as an example. It determines the trade offs that is associated with the allocation of the resources between the production of the two goods.

           The production possibilities curve or model shows the inverse relationship between the two goods and the services as producing different types of products or services will complete for the limited resources available.

          An economy has a very limited economic resource and therefore it can produce more number of one good by making only less of some another good.

6 0
3 years ago
The US agricultural sector experienced a severe drought in 2012. A drought decreases the supply of agricultural products, which
Nataliya [291]

Answer:

True

Explanation:

Exceptionally good weather will guarantee a good yield in crops. This will lead to an increase in supply of produce to the market, and when supply increases, the supply curve shifts to the right.

This is simply because there are more products and more sellers, and this will result in more supply.

5 0
3 years ago
According to Garvin's ________ definition of quality, quality is found in the components and attributes of a product.
Vladimir [108]

Answer:

product based

Explanation:

Garvin defined five measures or perspectives of quality:

  1. transcendental perspective: quality that can be perceived but not clearly defined.
  2. user perspective: concrete definition of quality, the product complies with the users' needs yes or no.
  3. manufacturing perspective: quality is measured as conformance to requirements, e.g. ISO standards.
  4. product perspective: quality is measured by the characteristics of the product.
  5. value based perspective: different aspects of quality can be valued differently depending on the stakeholder.
6 0
3 years ago
Teozocior.01.010
Vladimir [108]

Answer:

When the federal government spends more money than it receives in taxes in a ... spending over time in nominal dollars is misleading because it does not take ... defense spending as a share of GDP has generally declined since the 1960s, ... Healthcare expenditures include both payments for senior citizens (Medicare), ...

Explanation:

6 0
3 years ago
The United States currently imports all of its coffee. Suppose the annual demand for coffee by U.S. consumers is given by the de
Vlada [557]

Answer:

(a) $7; $205 million

(b) $9; $195 million

(c) $400 million

(d) $390 million

(e) Loss = $10 million

Explanation:

(a) Price paid by consumers when no tariff imposed:

= Marginal cost + Distribution cost

= $6 + $1

= $7

Quantity demanded:

Q = 240 - 5P

   = 240 - 5 × $7

   = 240 - $35

   = $205 million pounds

(b) At imposed tariff of $2 per pound, then the new price paid by consumers:

= Marginal cost + Distribution cost + Tariff

= $6 + $1 + $2

= $9

New quantity demanded:

Q = 240 - 5P

   = 240 - 5 × $9

   = 240 - $45

   = $195 million pounds

(c) Lost consumer surplus:

= ($9 - $7)($195) + (0.5)($9 - $7)($205 - $195)

= ($2 × $195) + (0.5 × $2 × $10)

= $390 + $10

= $400 million

(d) Tax revenue collected by government:

= Quantity demanded under tariff × tariff

= $195 × $2

= $390 million

(e) Tax revenue of $390 million received is less than the value of coffee sold under tariff $400 million.

Loss = $400 million - $390 million

        = $10 million

4 0
3 years ago
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