Answer:
A. USD 5,180/-
Explanation:
In the actual method of inventory valuation, the inventory reaming and the COGS (Cost Of Goods Sold) is measured after each purchase or sale of a transaction. So the COGS and the remaining value of the inventory is known all the time.
Formula:
- Gross margin is equal to Sales minus COGS
Answer:
Governance Form.
Explanation:
The buyer has the right to request a copy of several documents, including the Governance Form. This form summarizes the board of directors and unit rights.
Answer:
$258,500
Explanation:
The terms FOB shipping point indicates that ownership of the goods will passes to the buyer immediately the goods are accepted or collected from the seller by the public carrier. Since the goods in the question are already in transit, they should be added to the closing stock.
FOB destination destination implies ownership of the goods passes to the buyer at the destination. Since the goods in the questions are still in transit, they should be included in the closing stock.
Therefore, we have:
December 31 inventory = $210,000 + $24,000 + $24,500 = $258,500
Therefore, Bonita should report $258,500 as its December 31 inventory,
Answer:
d. All of the above are correct.
Explanation:
- If the current price exceeds equilibrium price, suppliers are willing to sell more units than in equilibria conditions (Qs in the picture below) , and consumers are willing to buy less units than in equilibria conditions (Qd in the picture below), as shown in the graph that has been attached.
- Then, quantity supplied is greater than quantity demanded (Qs>Qd).
- Equilibrium quantity (Q* in the picture) exceeds quantity demanded at $30 price (Qd in the picture), which is related to the decreased in quantity demanded when prices increases: in equilibrium prices are lower than $30, then consumers are willing to buy more.
- Because quantity supplied is greater than quantity demanded, there is a surplus of blue jeans at $30 price (the different between the amount that consumers are willing to buy and the amount suppliers are willing to sell is positive, and its magnitude equals the surplus of blue jeans).
- See picture attached.
