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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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A bag of chips will cost $1.25. The price is calculated by making linear equations in two variables and solving them by substitution method.

<h3>What is a linear equation in two variables?</h3>

Linear equation in two variables can be defined as an equation in the form:

\rm ax + by = c , where x and y are variables and a and b are not equal to 0.

For the given problem, let "s" be the cost of a sandwich and "c" be the cost of a chips bag.

Given:

The cost of three sandwiches and two chips bags is $22.00.

Therefore, the 1st equation will be:

\rm 3s +2c = 22                              

The cost of two sandwiches and one chips bag is $14.25.

Therefore, the 2nd equation will be:

\rm 2s + c = 14.25

To calculate the cost of a chips bag, we need to solve equation 1 and equation 2 by the substitution method.

From equation 2, the value of c will be:

\begin{aligned}\rm 2s + c &= 14.25\\\\c &= 14.25 - 2s\end                                   ... (3)

Now we will put  \rm c = 14.25 - 2s  in equation 1:

\begin{aligned} \rm 3s + 2c &= 22\\\\3s + 2(14.25 - 2s) &= 22\\\\3s + 28.50 - 4s &= 22\\\\-s + 28.50 &= 22\\\\s &= 28.50 - 22\\\\s &= \$6.50\end

On substituting the value of s in equation 3:

\rm  c = 14.25 - 2s \\\\c = 14.25 - 2(6.50)\\\\c = 14.25 - 13\\\\c = \$1.25

Therefore the cost of a bag of chips is $1.25.

Learn more about linear equations in two variables here:

brainly.com/question/84787

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Because the first members of the baby boom generation have now turned 50, we are likely to see a shift to more positive images o
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Their vast numbers translate into economic clout and political power
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Assuming that the federal reserve banks sell $40 million in government securities to commercial banks and the reserve ratio is 2
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The reserve requirement when the federal reserve banks sell $40 million in government securities to commercial banks is $8 million.

<h3>How to calculate the reserve requirement?</h3>

From the information given, the the federal reserve banks sell $40 million in government securities to commercial banks and the reserve ratio is 20 percent.

Therefore, the reserve requirement will be:

= 20% × $40 million

= $8 million.

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2 years ago
Pharoah Company has accumulated the following budget data for the year 2020. 1. Sales: 31,410 units, unit selling price $89. 2.
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Answer:

<u>Computation of cost of goods sold for 2020</u>

Direct materials(1 pound× $5 )                                  $5

Direct labor(3 hours × $12)                                      $36

manufacturing overhead ($8 × 3 hours)                $24

Total unit cost                                                          $65

<u>Budgeted multiple-step income statement for 2020</u>

Sales ( 31,410 units × $89)                            2,795,490

Less Cost of Sales (31,410 units × $65)      (2,041,650)

Gross Profit                                                      753,840

Less Operating Expenses :

Selling and administrative expenses:           (170,000)

Operating Income                                           583,840

Less Non - Operating Expenses

Interest expense                                             (30,000)

Income before income taxes                         553,840

Income tax (553,840×30%)                            (166,152)

Income After income taxes                            387,688

Explanation:

Cost of Sales = all manufacturing costs

Multi step - Income Statement separates income generated from Primary Activities of the Company (Operating Income) with Income generated from Secondary Activities of the Company (Non-Operating Income)

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