1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AVprozaik [17]
3 years ago
12

The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost $7,00

0 Expected selling Price $9,000 Expected selling cost $500 Normal profit margin 50% of price Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under IAS 2 after this event? Question 37 options: Inventory should be increased (debited) by $3,500. Inventory should be increased (debited) by $4,000. No adjustment should be made to inventory once it is written down. Inventory should be increased (debited) by $1,000.
Business
1 answer:
Tanzania [10]3 years ago
4 0

Answer:

Inventory should be increased (debited) by $3,500.

Explanation:

According to the IAS 2, the inventory value should be lower of historical cost or net realizable value

The historical cost is $12,000

And, the net realizable value is

= $9,000 - $500

= $8,500

Since as we can see the lower value is $8,500 but due to increase in  realizable value, the historical cost would remain the same i.e $12,000

So the inventory should be increased or debited by $3,500 i.e

= $12,000 - $8,500

= $3,500

You might be interested in
_____ _____ is a way to see if your product is meeting the needs of your customers.
Inga [223]
I believe it’s solicit feedback
8 0
3 years ago
1
Assoli18 [71]

Answer: C. A company report that measures the firm's social contributions inside and outside the firm

Explanation:

3 0
3 years ago
Read 2 more answers
Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Direc
natali 33 [55]

Answer:

Direct material quantity variance= $10,980 unfavorable

Explanation:

Giving the following information:

Standard Price or Rate Direct materials 8.5 kilos $ 6.00 per kilo

The company reported the following results concerning this product in August. Actual output 3,200 units Raw materials used in production 29,030 kilos Purchases of raw materials 31,600 kilos. Actual cost of raw materials purchases $ 195,920

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Standard quantity= 8.5*3,200= 27,200 kg

Actual quantity= 29,030kg

Standard price= $6

Direct material quantity variance= (27,200 - 29,030)*6= $10,980 unfavorable

5 0
3 years ago
A _____ is targeted to borrowers with low credit scores, high debt-to-income ratios, or other signs of a reduced ability to repa
Andrej [43]
It would be <span>Subprime mortgage loan.
Hope this helps! :D</span>
3 0
3 years ago
Bloom now believes it is more likely than not that it will have to sell the Taylor bonds before the bonds have a chance to recov
kow [346]

Answer:

Other than Temporary Impairment loss (Dr.) $400,000

Discount on bond investment (Cr.) $400,000

Fair value Adjustment (Dr.) $150,000

Net unrealized holding gain/losses - OCI (Cr.) $150,000

Explanation:

To record impairment loss on bond we debit the Other than temporary impairment loss account debit and discount on bond investment as credit by $400,000 which is the decline in fair value of Taylor bond.

To record the impairment loss recognized due to fair value method we debit the Fair value adjustment account as debit and Unrealized holding gains/losses as credit by $150,000.

6 0
3 years ago
Other questions:
  • Jason’s company has always emphasized that every employee is an important part of the company’s success and does not highlight i
    13·1 answer
  • Why must people make choices in economic situations?
    15·1 answer
  • All of the following will cause a decline in a company’s gross profit EXCEPT A : selling products with a lower markup. B : clear
    11·1 answer
  • Dell Computers invests excess cash balances overnight in a London bank to earn a higher interest rate than it could earn in a Ne
    13·2 answers
  • In what kind of situation would a silent partner be better than a partner who is very active in the business?
    5·2 answers
  • Private investment as a share of the economy tends to be higher in countries with ___ levels of economic freedom.
    11·1 answer
  • For use in a linear regression model, categorize which of the following variables should be represented as dummy variables and w
    15·1 answer
  • Francis Real Estate Company has the following account balances at December 31, the end of its fiscal year. Debit Credit Commissi
    14·1 answer
  • Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a
    9·1 answer
  • You receive a phone call from an individual claiming to work as an assistant to the governor. They are requesting confidential p
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!