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Fudgin [204]
3 years ago
10

The Bridal Gift Shop Company has 12 units in ending merchandise inventory on December 31. The units were purchased in November f

orâ $150 each. The price lists from suppliers indicate the current replacement cost of the item to beâ $152 each. What would be the amount reported as Merchandise Inventory on the balanceâ sheet?
Business
1 answer:
LUCKY_DIMON [66]3 years ago
7 0

Answer:

$1,800

Explanation:

According to the accounting principle, the inventory should be valued at lower of cost or net realizable value. The calculation is shown below:

Based on acquisition cost

12 units × $150 = $1,800

Ending inventory = $1,800

Based on current replacement cost

12 units × $152 = $1,824

Ending inventory = $1,824

As we see that the lower cost would be $1,800. So, $1,800 would be reported to the ending inventory

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Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price
Kipish [7]

Answer:

p1 = $259.53   p2 = $381.20

Explanation:

1. Find the revenue function.

This is a typical income maximization problem. Therefore, the first thing we should know is what are the revenues for each product.

Recall that the revenue is given by P * Q

1.a Find the revenue of the Ultra Mini (product 1):

R_{1} = P_{1} Q_{1}

R_{1} =P_{1} (100,000 - 200P_{1} + 10P_{2} )

R_{1} =100,000P_{1} -200P_{1} ^{2} +10P_{2}P_{1}

1.b Find the revenue of the Big Stack (product 2):

R_{2} = P_{2} Q_{2}

R_{2} =P_{2} (150,000 + 10P_{1} - 200P_{2} )

R_{2} = 150,000P_{1+2} +10P_{1}P_{2} -200P_{2}^{2}

2. Find the marginal revenues.

The revenue function must be derived from the price.

For product 1, we derive from P1:

MR_{1} = 100,000 -400P_{1} +10P_{2}

For product 2, we derive from P2:

MR_{2} = 150,000 + 10P_{1} - 400P_{2}

3. Create a system of linear equations in two unknowns

With the marginal revenue functions we create a system of linear equations in two unknowns (p1 and p2) and equal 0.

100,000 - 400P_{1} +10P_{2} = 0\\150,000 + 10P_{1} -400P_{2} = 0

4. Resolve the previous system

4.a. To make it easier, we can rethink the terms of the system like this:

100,000 - 400P_{1} +10P_{2} = 0 is the same as saying:

P_{2} = \frac{-100,000 + 400P_{1} }{10}

And 150,000 + 10P_{1} -400P_{2} = 0 is the same as saying:

P_{2}=\frac{150,000+10P_{1} }{400}

Therefore:

\frac{-100,000 + 400P_{1} }{10} =\frac{150,000+10P_{1} }{400}

Notice that now we only have one unknown (P1).

4.b. In order to eliminate fractionals, we can multiply both terms by 400:

\frac{400}{10} (-100,000 + 400P_{1} ) = \frac{400}{400} (150,000 + 10P_{1} )

(40)(-100,000+400P_{1}) =150,000+10P_{1}

-4,000,000+16,000P_{1} =150,000+10P_{1}

4.c. We solve the equation, putting numbers on one side and unknowns on the other:

-4,000,000-150,000=10P_{1} -16,000P_{1}

-4,150,000=-15,990P_{1}

\frac{-4,150,000}{-15,990} =P_{1}

P_{1} = $ 259.53

4.d. Once P1 has been identified, we replace it in any of the terms of the original system of equations (those established in 4.a).

P_{2}= \frac{-100,000+400(259.53)}{10}

P_{2} = 381.20

5 0
3 years ago
What is the process of researching or studying a concept?
Zolol [24]
Learning.
Or at least I believe so. Are there multiple choice?
4 0
3 years ago
Consumer demand for personal computers or smart devices ultimately determines the demand for the parts and materials involved in
Aliun [14]

Answer:

The correct answer is c. Derived demand .

Explanation:

Derived demand is the demand for goods and services that is generated as a result of the demand for other goods and services. This type of demand usually corresponds to the demand for factors or products, since the demand for a good or service may be related to the process necessary to produce another good or service, although it can affect both producers and consumers.

Derived demand can sometimes lead to an increase in the price of a marginal product, since the demand for the resources needed to produce a physical product also increases.

8 0
2 years ago
A product is scarce when what happens?
blondinia [14]
D. Demand is greater than supply
8 0
3 years ago
Read 2 more answers
Lincoln Park Co. has a bond outstanding with a coupon rate of 5.73 percent and semiannual payments. The yield to maturity is 6.7
Natalija [7]

Answer:

Bond Price​= $1,774.05

Explanation:

Giving the following information:

Coupon rate= 0.0573/2= 0.02865

YTM= 0.067/2= 0.0335

The bond matures in 23 years.

Par value= $2,000

<u>To calculate the bond price, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 57.3*{[(1 - (1.0335^-46)] / 0.0335} + [2,000/1.0335^46]

Bond Price​= 1,334.76 + 439.29

Bond Price​= $1,774.05

5 0
2 years ago
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