Answer:
$43,030
Explanation:
IAS 2 Inventories states that inventory is to be recognized at cost, however, subsequent measurement requires that inventory be carried at the lower of cost or net realizable amount (NRV).
As such, where the cost of inventory is higher than the NRV, it is written down to the NRV using the following entries,
Debit Inventory write off/Cost of goods sold
Credit Inventory account
with the difference between the cost and the NRV.
Inventory Quantity Unit Cost Unit NRV New unit cost
Furniture 230 $88 $103 $88
Electronics 53 $430 $315 $315
From the analysis above, the cost of inventory is lower than the NRV for Furniture, hence no adjustment is required. However, the cost of Electronics is higher than the NRV hence a write down is required. This amount is
= ($430 - $315) × 53
=$115 × 53
= $6,095
Total recorded cost(ending) of inventory before any adjustment
= (230 × $88) + (53 × $430)
= $43,030
The answer is d the entire trail is 512 and he already walked 358 so 512-358
Answer:
PED= 0.1571
Explanation:
The price elasticity of demand (PED) indicates how the quantity demanded change when the price changes. Is defined by this equation:
Price Elasticity of Demand = Percentage change in Q/ Percentage change in P
In this case, the problem is giving percentage changes in Q but we must calculate the percentage change in price:
%Change in price = ( p2-p1/p1)*100= ($4.09-$2.96)/$2.96= 0.3817*100=38.17%
%Change in quantity is= -6%
PED= -6%/38.17%
In absolute value:
PED= 0.1571
If the PED is less than 1 then gasoline is considered as inelastic.
