Answer:
1. Huprey can resonably estimate that a pending lawsuit will result in damages of $1,390,000 it is probable that Huprey will lose the case. - record a liability
2. It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable. - Disclose in notes
3. Huprey is being sued for damages of $2,260,000. It is very unlikely (remote) that Huprey will lose the case. - Have no disclosure
Answer:
Explanation: Two important factors that could be considered to help decide how much inventory to keep in existence of a particular item in the store are:
1. Different inventory management techniques: These well-developed techniques will allow for an adequate level of inventory since, if not applied, maintenance of high levels of inventory could be incurred. The same would happen if there is a low level of inventory, since more costs would also be incurred as well, since there would be a need to place more orders. Maintaining an adequate level of inventory allows you to be stocked all the time and provide optimal service.
2. Use technological tools, that is to say computer systems to optimize the realization of inventories, taking into account that it is necessary to work with qualified personnel to keep a record of all the items owned by the company.
Answer:
A reduction of top management's control of the budget process to one of oversight.
Explanation:
Budgeting can be defined as a financial plan which helps different organizations in the control of their various revenues. Budgeting can also be described as a forecast of how much a company expect to sell and also how much they expect to spend on various costs.
Advantages of budgeting include:
- It helps an organization to achieve their objectives and goals.
- It helps businesses to decide on essential areas to channel their resources to.
Disadvantages of budgeting include:
- a budget may be inaccurate because it is prepared on the basis of assumptions.
- it is expensive and consumes a lot of time.
The service Revenue will be:
1. Cash for service performed in 2021 -------------------------- $13,500
2. Bill sent to clients for service performed in 2021--------- $4,100
TOTAL------------------------------------------------------------------------$17,600
The $5,100 received was for the service done in 2020 and this will be decrease the account receivables on the balance sheet while the $2,100 received for work to be done in 2022 will be recorded as an unearned revenue because the service has not been rendered.
Answer:
The estimated finished goods inventory balance at the end of November is closest to: $383,800.
Explanation:
<em>First calculate the units of ending finished goods inventory for November </em>
units of ending finished goods inventory = 10,100 × 40%
= 4,040 units
<em>The determine the unit standard cost</em>
Raw materials ( 5 × $1.00) = $5.00
Direct labor (3.0 × $19.00) = $57.00
Manufacturing overhead : Variable (3.0 ×$11.00) = $33.00
Unit Standard Cost = $95.00
<em>Finished goods inventory balance</em>
Finished goods inventory balance = units of ending finished goods inventory × unit standard cost
= 4,040 units × $95.00
= $383,800
