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Katyanochek1 [597]
3 years ago
10

LF Corporation, a manufacturer of Mexican foods, contracted in 2014 to purchase 1,500 pounds of a spice mixture at $5.00 per pou

nd, delivery to be made in spring of 2015. By 12/31/14, the price per pound of the spice mixture had dropped to $4.50 per pound. In 2014, LF should recognize:a a loss of $7,500.b. a loss of $750.c. no gain or loss.d. a gain of $750.
Business
1 answer:
kramer3 years ago
5 0

Answer:

(b) a loss of $750

Explanation:

Given;

Amount of spice mixture to be purchased = 1500 pounds

Price of spice mixture in 2014 = $5.00 per pound

Changed price of sugar mixture = $4.50 per pound

Now,

The amount to be received on the day of contract in 2014

= Amount of spice mixture to be purchased × Price of spice mixture in 2014

= 1500 × $5.00

= $7,500

and,

The amount to be received in 2015

= Amount of spice mixture to be purchased × Price of spice mixture in 2015

= 1500 × $4.50

= $6,750

The difference in Expected amount and the amount to be received

= $7500 - $6750

= $750

Since the amount to be received is less than the expected amount on the day of contract

Therefore,

a loss will be recognized

Hence,

the correct answer is option (b) a loss of $750

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Which of the following statements is true of semiglobalization?
lorasvet [3.4K]

Answer:

a.

Explanation:

The definition of Semi-Globalization is:

<em>Semi-globalization covers the range of situations in which neither the barriers nor the links among markets in different countries can be neglected.</em>

Now let's analize the statements.

a- True, It is more complex than total isolation and total globalization, as those barriers can't be taken off the equation.

b. It is not used for assessing and classifying risks.

c. No, that would be isolation. In here we are talking about an incomplete cross-border integration.

d. It is not one-directional. The borders and links are multi-directional.

5 0
3 years ago
The condensed product-line income statement for Rhinebeck Company for the month of October is as follows:
Sonja [21]

Answer:

Mufflers should be continued (Alternative 1)

Explanation:

Preparation of a differential analysis dated to determine if Mufflers should be continued (Alternative 1) or discontinued (Alternative 2).

DIFFERENTIAL ANALYSIS

Continued (Alternative 1); Discontinued (Alternative 2); Differential effect on income Alternative 2)

October 31

Revenue $45,000 $0 ($45,000)

Costs:

Variable cost of goods sold ($21,600) $0 $21,600

[$27,000*(1-20%)]

Variable selling and administrative expense

($17,500) $0 $17,500

[$25,000*(1-30%)]

Fixed income ($12,900) ($12,900) $0

[($27,000*20%)+($25,000*30%)]

Income(Loss) ($7,000) ($12,900) ($5,900)

Based on the above Differential Analysis MUFFLERS SHOULD BE CONTINUED reason been that the income will decrease by $5,900 if Mufflers discontinued.

7 0
3 years ago
The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current projec
storchak [24]

Answer: template method

Explanation:

The bottom-up approach for estimating times and costs that uses costs from past projects that were similar to the current project is known as template method.

It should be noted that estimating time and cost are vital because it helps schedule work, develop needs of cash flow and show progress of a project.

5 0
3 years ago
Kidzo Inc., a toy car company, has several groups in its manufacturing unit dedicated to do different tasks. For example, it has
MissTica

Process departmentalization

Explanation:

Departmentalization

  • An organization has separate departments based upon the different task each performs for the organization.
  • Functional departmentalization - a manufacturing company may have a production department, sales and marketing department, an accounting department, and a human resources department.
  • Product departmentalization -  a company may have a wide range of products
  • Customer departmentalization - a company may have different customer bases
  • Geographical departmentalization - a company can hire employees to serve different customers from different geographical locations
  • Process departmentalization - a company may have employees grouped into teams for a specific process
5 0
3 years ago
McCoy’s Fish House purchases a tract of land and an existing building for $900,000. The company plans to remove the old building
kherson [118]

Answer: $962000

Explanation:

From the information given, the amount

that McCoy’s Fish House should record as the cost of the land will be:

Purchase price = $900,000

Add: Title insurance = $2000

Add: Back property tax = $8000

Add: Cost incurred to remove building = $45000

Add: Cost incurred to level the land = $10000

Less: Savage value of materials = $3000

Cost of land = $962000

Therefore, the cost of land is $962000

8 0
3 years ago
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