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Setler79 [48]
3 years ago
10

Carla Vista Company sells product 2005WSC for $130 per unit. The cost of one unit of 2005WSC is $127, and the replacement cost i

s $126. The estimated cost to dispose of a unit is $6, and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market?
Business
1 answer:
Alexxx [7]3 years ago
7 0

Answer:

Product 2005WSC  should be reported at $127

Explanation:

Using the lower-of-cost-or-market, Carla Vista Company reports its Inventory at the <em>lower of</em> cost and net realizable value at the end of its financial period.

Cost per unit of 2005WSC is $ 127 (given)

<u>Net realizable value </u><u>per unit of 2005WSC is :</u>

Selling Price ( $127 × 1.40)                   $177.80

Less Estimated Cost to Sell                 ($6.00)

Net realizable value                           $ 171.80

<u>Conclusion :</u>

Therefore, the lower is Cost at $127

Thus product 2005WSC  is measured at $127

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hope this helps

6 0
2 years ago
A firm has sales of $3,340, net income of $274, net fixed assets of $2,600, and current assets of $920. The firm has $430 in inv
Vlad [161]

Answer:

The answer is E. 12.22 percent.

Explanation:

The calculation for common-size percentage is: (Amount / Base amount) x 100.

On the balance sheet or financial position the base is total assets and on the income statement the base is net sales.

The common-size statement value of inventory will be:

Value of inventory/total assets.

Total assets = $2,600 + $920

=$3,520

Value of inventory = $430

Therefore, we have:

($430/$3,520) x 100

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8 0
3 years ago
Suppose the U.S offered a tax credit for firms that built new factories in the U.S. Then __________a The demand for loanable fun
nadezda [96]

Answer:

Option (b) is correct.

Explanation:

When the united states offered a tax credit to the firms that built the new factories then this will increase the demand for loanable funds because every firm wants to built a new factory, so that they are eligible for the tax credit given by the U.S.

This increase in the demand for loanable funds at the ongoing interest rate would shift the demand curve of loanable funds rightwards and this economy is experiencing a situation where the demand of loanable funds is greater than the supply. This will create a shortage of loanable funds.

8 0
3 years ago
Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currentl
Aleksandr-060686 [28]

Answer and Explanation:

a. The computation of operating profit is shown below:-

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= $15 - $7

= $8

Total increment in operating profit = Profit per unit × Total number of units

= $8 × 24,000

= $192,000

b. Minimum transfer price = Variable cost = $7 (because polk has overcapacity and there is no change in fixed cost and polk minimum has to recover its variable production cost)

c. Maximum transfer price = purchase cost from outside supplier = $15 (because if the internal transfer piece is more than $15 Bishop will lose so he prefers to buy from outside and the company as a whole will lose $192,000 in incremental operating profit

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4 years ago
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padilas [110]
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4 years ago
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