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Gala2k [10]
3 years ago
6

Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $26; selling price, $36;

selling costs, $4. What unit value should Ross use when applying the lower of cost or net realizable value rule to ending inventory
Business
1 answer:
Gekata [30.6K]3 years ago
3 0

Answer:

The unit value os $20 which Ross should use

Explanation:

LCM stand for or termed as Lower of Cost or Market approach- This approach is described as the inventory values at the historical cost or lesser than the replacement cost of market.

NRV stands for or termed as Net Realizable Value- This rule or method is defined as the estimated selling price, which the company expects to gather in the cash form from the customer through the sale of the inventory.

Computing the unit value as:

Given,

Cost price per unit is $20

Selling price per unit is $30

Selling cost per unit is $4

Using the NRV method:

NRV = Selling Price - Selling Cost

= $30 - $4

= $26

Using the lower of cost rule:

Cost = Cost of product

Cost = $20

Therefore, the $20 is the unit value which Rose should use.

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If anderson applies the initial value method in accounting for kenneth, what is the consolidated balance for the equipment accou
Xelga [282]

If Anderson applies the initial value method in accounting for Kenneth, the consolidated balance for the Equipment account as of December 31, 2021 will be $1,104,000.

Excess amortizations: (120,000 - 90,000 = 30,000/10 = 3,000 per year).

2021 Balance Goehler BV 975,000 + Kenneth BV 105,000 + Fair value adjustment 30,000 - amortization for 2017 and 2018 (3,000 × 2) = 1,104,000

What is Equipment account?

Equipment is a long-term asset account that records the cost of the equipment and is noncurrent. The income statement account will be debited for equipment depreciation over the course of its useful life Depreciation Expense and crediting the balance sheet account Accumulated Depreciation.

A company's usage of equipment as a type of fixed asset is recorded on the balance sheet under the line item "property, plant, and equipment" in the long-term assets section. Equipment is capitalized rather than immediately expensed when it is bought and put into operation. This makes sense given that these are regarded as concrete, long-term assets that help the company over a considerable amount of time. The cost of the assets is then written down throughout the duration of the machinery's useful life.

To know more about asset refer:

brainly.com/question/14404094

#SPJ4.

Disclaimer- The question was incomplete. Check below the full question.

Anderson Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2020, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Anderson has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Anderson has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.

If Anderson applies the initial value method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

3 0
1 year ago
A firm produces two goods q1 and q2. for economies of scope to occur, it must be true that:
Oliga [24]
For economies of scope to occur it must be true that THE COST OF PRODUCING THE TWO GOODS TOGETHER IS LESS THAN THE COST OF PRODUCING THE GOODS SEPARATELY.
The economy of scope is the proportionate savings that is gained by producing two or more different goods together, when the cost of doing so is less than that of producing each separately.
5 0
3 years ago
Sylvia is a member of a team that uses e-mail, messenger, and blogging to communicate. although she sees members of her team on
denpristay [2]
Sylvia' s team can best be described as a virtual team.
Hope this helps!
6 0
3 years ago
Two companies require identical skills and training from their workers. Both employ 10,000 people. On average, RealSafe has one
mr Goodwill [35]

Explanation:

1. If the salary paid by both companies were same people would prefer to work at Realsafe since it more safer. But not too safe provides a higher pay which makes people accept the higher risk over there.

2.The for a worker at Realsafe is 1/10000, while at not to safe it’s 2/10000. The premium associated with that risk Is the $500/year from not to safe.

3. Value of statistical life

= 1*$500 / 1/10000

= 5,000,000.

4. If the value of statistical life is constant across all the population it’s acceptable and valid.

8 0
3 years ago
The manufacturing cost per unit for absorption costing is:
saveliy_v [14]

Answer:

Always higher than manufacturing cost per unit for variable costing.

Explanation:

Absorption costing continuously contains fixed overheads similarly while computing the manufacturing cost.  

Conversely, under variable costing only adjustable overheads were included.

Thus, the manufacturing cost under absorption costing method is always higher than variable costing method  

Therefore, per unit cost will always be higher under absorption costing than in variable costing.

So, option C is the correct option

3 0
3 years ago
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