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
valentinak56 [21]
3 years ago
9

Given the following items and costs as of the balance sheet date, determine the value of Light Company's merchandise inventory.

Business
1 answer:
STALIN [3.7K]3 years ago
7 0

Answer:

Light Company

Merchandise Inventory:

Goods $2,400 sold on FOB shipping point =            $0

Goods $3,400 bought on FOB shipping point =       $3,400

Goods $4,400 on consignment               =                 $4,400

Goods $5,400 with net realizable value of $1,200 = $1,200

Value of inventory owned by Light Company     =  $9,000

Explanation:

a) Goods $2,400 sold on FOB shipping point: FOB shipping point means Free on Board shipping point.  This trade term specifies when ownership right is established, that it is at the shipping point and not the destination of the goods when the buyer takes possession.  The ownership was transferred to customer at shipping point with all risks and benefits.  They no longer belong to Light and are therefore not part of Light's inventory after the shipment.

b) Goods $3,400 bought on FOB shipping point:  As explained above, the ownership right and obligation were transferred at shipping point.  The goods belong to Light as it is the lawful owner based on the shipping term.

c) Goods $4,400 on consignment:  Goods on consignment do not belong legally to consignee though they are at his physical possession.  They belong to the consignor until they are sold to a third party.

d) Goods $5,400 with net realizable value of $1,200: The value of an item is not actually the cost but what it can be sold for.  This is especially so for an item that had previously suffered some damage.  The net realizable value is therefore to be used to account for the damaged goods so that profit is not overstated.

You might be interested in
The Fed offers three types of discount window loans. ________ credit is offered to small institutions with demonstrable patterns
Soloha48 [4]

Answer:

The answer options to this question are as follows:

to. Seasonal; extended; adjustment

b. Extended; adjustment; seasonal

c. Adjustment; extended; seasonal

d. Seasonal; primary; secondary

and. Adjustment; seasonal; extended

The correct answer is d. Seasonal; primary; secondary.

Explanation:

Seasonal credit is a freely available credit. Seasonality is a concept frequently used in the economic study. It assumes that a large part of the economic variables experience regular fluctuations or changes over time, which makes them predictable and facilitates their temporal study.

The fact that the aforementioned regular variations occur makes many aspects of the present day to be expected. That is, patterns of behavior are often formed in historical series that can be classified in periods of time and that show the evolution of some economic aspect, such as the demand for goods or services, supply, consumption, employment data. , prices, among others.

Primary credit, also known as net internal credit, refers to the financing that the Central Bank provides to residents in the country less the liabilities that it has in favor of these. It is obtained from the difference between the amount of the monetary base and that of net international assets.

Whereas sequential credit is issued on the basis of other credit, for example, a back to back credit.

5 0
3 years ago
A marketing plan includes this marketing objective: "Create positive feelings about our brand." What is the main problem with th
Nesterboy [21]

c. It is not specific and measureable.

i hoped this helped


7 0
3 years ago
Read 2 more answers
What are some ways to manage a stakeholder relationship closely? Give examples of how you might manage relationships differently
Ludmilka [50]
<span>Managing a relationship closely usually involves more time and communications. You might meet with the stakeholder more often or communicate in other ways. There are many ways to work with unique personalities. Some people need a lot of attention and small talk, while others prefer a more direct approach, for example.</span>
4 0
3 years ago
Discuss motown production techniques as applied to motown girl groups of the 1960s, including specific artists and performance/n
Liono4ka [1.6K]

Motown records was created by Berry Gordy Jr. who is an American record executive, record producer, song writer, film producer and television producer.  The Motown record  company played a very important role in the racial integration of popular music as an African-American owned label that got crossover success. Motown was the most successful record label of soul music. Motown producers believed "resolutely" in KISS principle (keep it simple stupid) and they used Pop production techniques such as the use of  orchestral string sections, charted horn sections, and carefully arranged support vocals. Complex arrangements and melismatic vocal riffs were avoided.

8 0
3 years ago
Which test best helps students prepare for the ACT? A.SAT B.PSAT C.NMSQT D.Aspire
givi [52]
The SAT helps prepare for the ACT
7 0
3 years ago
Other questions:
  • Tuller wants to start a commercial trucking business and also wants to form his own limited liability company (LLC). Tuller, as
    9·1 answer
  • An asian buyer meets with a broker and asks to be shown homes. if she doesn't ask to see homes in areas with no asian residents,
    9·1 answer
  • In Baer Food Co.’s Year 3 single-step income statement, the section titled Revenues consisted of the following: Net sales revenu
    12·1 answer
  • What is not a criterion that influences manufacturing plant or warehouse facility location decisions?
    6·1 answer
  • Suppose the production of a particular good causes a negative externality. Based on market forces​ only, how will this impact th
    9·1 answer
  • The Marshall Company has a process costing system. All materials are added when the process is first begun. At the beginning of
    8·1 answer
  • The amount of sales tax collected by a retail store when making sales is:
    10·1 answer
  • Zappos' product selection includes performance athletic shoes, outdoor coats, contemporary shirts, couture accessories, and more
    8·1 answer
  • Carmichael Inc. has a beginning balance in Accounts Receivable of $100,000 at June 1. On June 24, Carmichael sells $20,000 of me
    12·1 answer
  • Company Name: XXX XXX Coffee Co
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!