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4 years ago

Budgeted production is calculated by: Multiple Choice

Business

1 answer:

SOVA2 [1]4 years ago

5 0

Answer:

Budgeted Production is obtained by adding Sales to the desired finished goods inventory and subtracting beginning finished goods inventory.We move opposite to get to the budgeted production .

For example if we have $ 300,000 sales and desired ending inventory is $ 50,000 and finished good beginning inventory is $ 25,000 so the budgeted production would be

Budgeted Production = Sales + Desired Ending Inventory - Beginning Inventory

Budgeted Production = $ 300,000 + $ 50,000- $ 25,000= $ 325,000

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As of December 31, year 2, a company has an inventory item that was originally purchased for $80 in year 1. The inventory item w

Naily [24]

The net realizable value of the inventory as of December 31, year 2, according to IFRS is <u>$75</u>.

<h3>What is net realizable value under IFRS?</h3>

Under the IFRS, inventories should be stated at the lower of cost and net realizable value. The net realizable value equals the selling price less the estimated costs of sale.

<h3>Data and Calculations:</h3>

Inventory purchase cost = $80

Net realizable value in year 1 = $60

Net realizable value in year 2 = $75

Replacement cost = $65

Normal profit margins = 20%

Thus, the net realizable value of the inventory as of December 31, year 2, according to IFRS is <u>$75</u>.

Learn more about net realizable value at brainly.com/question/794345

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2 years ago

A rich donor gives a hospital $100,000 one year from today. Each year after that, the hospital will receive a payment 5% larger

wariber [46]

Answer:

D) $779,843.27

Explanation:

The present value of this donation = Donation in Year 1/(1+ discount rate)^9 + Donation in Year 2/(1+ discount rate)^8 + ….. + Donation in Year 2/(1+ discount rate)^1

= $100,000/(1+9%) + $100,000*(1+5%)/(1+9%)^2 +$100,000*(1+5%)^2/(1+9%)^3…. +$100,000*(1+5%)^9/(1+9%)^10 = $779,843.27

Or we can easily input in excel and generate NPV as file attached; in which the formula is NPV(discount rate, cash inflow year 1 : cash inflow year 10) = (9%, 100000,100000*(1+5%)….,100000*(1+5%)^9) = $779,843.27

Download xlsx

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3 years ago

Blue Spruce Corp. accumulates the following cost and net realizable value data at December 31. Inventory Categories Cost Data Ne

Kruka [31]

Answer:

<u>Company's total inventory</u> 30,850

Camaras: 10,960

Camcorders: 8,850

DVDs: 11,040

Explanation:

<u>Camaras: </u>

cost: 10,960

net realizable value: 12,060

<u>Camcorders: </u>

cost: 8,850

net realizable value: 9,170

cost: 12,100

net realizable value: 11,040

<u>Company's total inventory</u>

10,960 + 8,850 + 11,040 = 30,850

We must pick between the historic cost or the net realizable value the lower. The reasoning behind this is the conservatism accounting principle to keep the assets valued at minimum.

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3 years ago

What does a police car look like

insens350 [35]

This is a police car

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3 years ago

A portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. Stock B has a beta of .95

Lapatulllka [165]

If a portfolio is comprised of two stocks. Stock A comprises 65% of the portfolio and has a beta of 1.21. The portfolio beta is 1.119.

<h3>Portfolio beta</h3>

Using this formula

Portfolio beta=(Stock A portfolio×beta)+[(1-Stock A porfolio)× Stock B beta]

Let plug in the formula

βp = (.65 × 1.21) + [(1 - .65) × .95]

βp = (.7865) + [.35 × .95]

βp= .7865+ .3325

βp = 1.119

Therefore the portfolio beta is 1.119.

Learn more about portfolio beta here:brainly.com/question/14986133

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2 years ago