1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Schach [20]
3 years ago
12

A Co. showed the following values for its inventory as of the end of its fiscal year: Historical cost $100,000 Current replaceme

nt cost 70,000 Net realizable value [NRV] 90,000 NRV less a normal profit margin 80,000 Fair value 96,000 What amount should the company report for inventory on its balance sheet
Business
2 answers:
Levart [38]3 years ago
4 0

Answer:

$90,000

Explanation:

The reason is that the International Accounting standard IAS 3 Inventories says that the asset must be reported at lower of:

Cost &

Net realizable value

Here the cost is $100,000 and NRV is $90,000, which means that the inventory must be reported at $90,000 which is the lower value.

PIT_PIT [208]3 years ago
4 0

Answer:

The value of the inventory is $90,000,NRV

Explanation:

According  to International Financial Reporting Standard,specifically IAS 2, inventories should be valued at the lower of cost or net realizable value.

In this scenario net realizable of $90,000 is lower than cost of $100,000,hence the inventory is recorded in the balance sheet at $90,000.

The necessary entries to bring inventory value to $90,000 is by crediting inventory $10,000 with a corresponding debit entry posted to statement of profit or loss(income statement)

You might be interested in
I don’t understand this and need help
LuckyWell [14K]
I think tools, design, and materials
6 0
3 years ago
If you are falling behind on your student loan payments, which of the following steps should you take to avoid default?
larisa86 [58]
The correct answer among all the other choices is "Contact your lender." If you are falling behind on your student loan payments, this is the step you should take to avoid default. Thank you for posting your question. I hope this answer helped you. Let me know if you need more help. 
7 0
3 years ago
Read 2 more answers
The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the fi
Dimas [21]

Answer:

                                Quik Furniture Company

              Production cost report - Sanding department

                         Month ended on March 31, 2020

Units                           Physical units                   Equivalent units

                                                                Materials                 Conversion          

Units started                    9,240

<u>in production                                                                                              </u>

Completed and               6,240

transferred out

<u>Work in progress                                       3,000                          600      </u>

Total units                       6,240                 3,000                          600

accounted for

Costs                                          Direct               Conversion       Total

                                                   materials          costs

Beginning WIP                              $0                     $0                     $0

Costs added during                  $36,960           $51,642            $88,602

<u>period                                                                                                           </u>

Total costs                                 $36,960           $51,642            $88,602  

Cost per unit                                  $4                  $7.55                 $11.55

                                                  (9,240 u.)         (6,840 u.)       (finished u.)

5 0
3 years ago
Preston has to make four phone calls to clients today. The call to Mr. Miller will take about an hour to complete, the call to M
MrRissso [65]

Answer:

Preston has to make four phone calls to clients today. The call to Mr. Miller will take about an hour to complete, the call to Ms. Winnecuit will take about five minutes to complete, the call to Mr. Drudge will take about thirty minutes and the call to Mrs. Freich will take about fifteen minutes to complete. If all the calls are equally important, who should Preston call first?

From the analogy above, in order to maximize the time frame. The call to lesser clients should be prioritized before others, this means that Preston should place a call to Ms Winnecuit which will last for five minutes follow by Mrs Freich which will last for fifteen minutes follow by Mr Drudge which will last for thirty minutes and lastly to Mr Miller which will last for about an hour.

Prioritization comes in play to time frame of each call, the lesser minutes calls will not take too much time to be completed while the call with highest time frame comes last as a result of the time involved.

Explanation:

6 0
3 years ago
Read 2 more answers
Which statement is true of all transactions?
AnnZ [28]
I’m pretty sure it’s D
5 0
3 years ago
Read 2 more answers
Other questions:
  • A nominal interest rate is defined as "the opportunity cost of holding or using money." explain what you understand this definit
    15·1 answer
  • 2 things
    10·1 answer
  • The Web 2.0 revolution has changed the way businesses communicate with consumers and within their own organizations. Podcasts, w
    13·1 answer
  • Suppose an economy is initially in a steady state with capital per worker below the Golden Rule level.
    12·1 answer
  • A business may survive and prosper during the growth stage even though it has neither differentiated its offering from competito
    11·1 answer
  • Which franchise model legally obligates a franchisee to replicate all aspects of the franchisor’s business?
    7·1 answer
  • The Draper Company is considering dropping its Doombug toy due to continuing losses. Revenue and costs data on the toy for the p
    11·1 answer
  • Differentiate wealth-creating venture from income-generating venture.
    12·1 answer
  • A firm purchased $120,000 worth of light general-purpose trucks. The operations of the trucks lead to annual income of $60,000 f
    13·1 answer
  • The entrepreneur who does not change the method of production already introduced is.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!