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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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Answer:

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Monopolistic competition -

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8 0
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Bas_tet [7]

The total amount of final goods and service produced in a country that people, businesses, governments, and foreigners plan to buy is Gross domestic product (GDP).

<h3>What is Gross domestic product (GDP)?</h3>
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Learn more about the Gross domestic product (GDP) with the help of the given link:

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5 0
2 years ago
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Zolol [24]

Policies related to setting interest rates, management of money supply, and the buying/selling of treasury bonds are referred collectively as <u>Monetary policy</u>

Monetary policy is primarily involved with the management of interest rates and the total pool of money in circulation and is generally taken out by central banks, such as the U.S. Federal Reserve.

<h3>What is monetary policy and fiscal policy?</h3>

Monetary policy refers to central bank activities that are headed toward influencing the amount of money and credit in an economy. By contrast, fiscal policy guides to the government's decisions about tax and spending. Both monetary and fiscal policies are used to control economic activity over time

To learn more about Monetary policy, refer

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8 0
2 years ago
Friendly's quick loans, inc., offers you "$4.10 for $5.10 or i knock on your door." this means you get $4.10 today and repay $5.
storchak [24]
If it costs $5.10 to get $4.10 from Friendly's then the loanee would pay about 24% which is a pretty high interest rate and presumably the interest rate would decrease with a higher amount loaned as on a larger amount the actual amount of interest earned would still be significant with a lower interest rate.
6 0
3 years ago
Read 2 more answers
Gains or losses on cash flow hedges are Group of answer choices ignored completely. recorded in equity, as part of other compreh
Helga [31]

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<u>The gains or losses of a cash flow hedge must be recorded, as part of other comprehensive income, in equity.</u>

7 0
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