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IRISSAK [1]
2 years ago
11

Oslo Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. Aprofit margin of

30% on selling price is considred normal for each product. Specific data with respect to each product follows:
Product 1 Product 2


Historical cost 20.00 35.00


Replacement cost 22.50 27.00


Estimated cost to dispose 5.00 13.00


Estimated selling price 40.00 65.00

In pricing its ending inventory using the lower of cost or market, waht units values should Oslo use for products #1 and # respectively?
Business
1 answer:
Fantom [35]2 years ago
7 0

Answer:

$20.00 and $32.50

Explanation:

The computation of the ending inventory using the lower of cost or market value which is shown below

For Product 1

Given that

Replacement Cost = $22.50

Net Realizable Value is

= Estimated selling price - Estimated cost to dispose

= $40 - $5

= $35

So, the market value is

= Net Realizable Value - Profit Margin

= $35 - (0.30 × $40)

= $23

As we can see that the cost is $20 and the market value is $23 so the lower value is $20 and the same should be selected

For Product 2

Given that

Replacement Cost = $27

Net Realizable Value is

= Estimated selling price - Estimated cost to dispose

= $65 - $13

= $52

So, the market value is

= Net Realizable Value - Profit Margin

= $52 - (0.30 × $65)

= $32.50

As we can see that the cost is $35 and the market value is $32.5 so the lower value is $32.5 and the same should be selected

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Landmoon Inc. has 10,800 shares of common stock outstanding at a price of $42 per share. It also has 245 shares of preferred sto
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Answer:

 0.0210

Explanation:

The computation of the weight of the preferred stock is shown below:

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Equity 10,800   $42         $4,53,600                0.4179

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4 0
2 years ago
1. Harley Davidson has its engine plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported
Serggg [28]

Answer:

Company should load 1,479.9 motorcycles on each truck.

Explanation:

Cost per trip = $1,000

Demand for motorcycles = 300 per day

Cost per engine = $500

Holding cost =  20% of $500

                     = $100

Assuming that company plant works for 365 days in a year,

Annual demand = 300 motorcycles × 365 days

                           = 109,500 motorcycles

Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2DS}{H}}

where,

D = Annual demand in units

S = Set up cost per order

H = Handling cost per order

Economic\ order\ quantity\ for\ each\ truck=\sqrt{\frac{2\times109,500\times1,000}{100}}

=\sqrt{\frac{219,000,000}{100} }

\sqrt{2,190,000}

= 1,479.9

Thus, the company should load 1,479.9 motorcycles on each truck.

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3 years ago
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Answer:

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If someone addresses you formally, that is because that person expects the conversation to be formal, or because you both are in a formal enviroment, for example, a work meeting. For this reason, the best to do in such situation is to address the other person formally as well.

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2 years ago
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