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vovangra [49]
3 years ago
12

Determine which of the following statements are correct regarding damaged or obsolete goods. (Check all that apply.)

Business
1 answer:
fenix001 [56]3 years ago
8 0

Answer:

1.  Damaged or obsolete goods are not counted in inventory if they cannot be sold.  

2.  If these can be sold… Cost should be reduced to Net Realizable Value

Explanation:

The law relating to the valuation of inventory is that ''inventory should be valued at lower of 'Cost' and 'Net Realizable Value'.

Therefore in the case of damaged or obsolete goods, they have to be eliminated from inventory, otherwise it will lead to overvaluation.

However in the case where these can be sold, They have to be valued at lower of 'cost' or 'salable value', implying that 'Cost' should be reduced to 'Net Realizable Value'

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Sunland Corporation had net sales of $2,425,800 and interest revenue of $38,200 during 2020. Expenses for 2020 were cost of good
ladessa [460]

Answer:

Prepare a single-step income statement for the year ended December 31, 2020

Explanation:

SUNLAND CORPORATION  

Inconme statement  

For the year endend December 2020  

 

 

Revenue  

Net Sales               2.425.800  

Interes Revenue             38.200  

Total Revenue        2.464.000  

 

Expenses  

Cost Of goods             1.458.200  

Administrative expenses 212.600  

Selling xpenses                 282.000  

Interes expense                   46.400  

Tax rate                                  139.440  

Expenses                       2.138.640  

 

Net income                           325.360  

 

Shares issued                     70210  

Earning p/share                        4,63  

7 0
3 years ago
Develop an Excel worksheet simulation for the following problem. The management of Paragon Household Products is considering the
Alexxandr [17]
<h2><u>Disclamer:</u></h2>

As it ask to run simulations the values calculates will difer even if you follow the same step as I did.

Answer:

Mean Profit:  $ 4,295  

Probability of loss:  29.80%

As the product has a mean profit it will on average generate gains

but:  

as the standard deviation of the simulation was $ 7,778.40

<u>we should not invest on the product as it is to variable</u>

<u>Explanation</u>:

We are going to use the =RAND() function of excel

which, generates a random number between 0 and 1

This will be done 1,000 times 500 for the variable cost

and 500 for the demand.

Then we copy and paste this numbers to get them fixed.

Then, we convert them into actual cost and demand in units considering their distribution

using excel dist.norm.inv

Now, with this values we solve for profit on each one.

<u></u>

FOr the complexity I attached the excel file as the plataform interface cannot handle large tables.

Download xlsx
6 0
2 years ago
At the beginning of the period, the Cutting Department budgeted direct labor of $52,350 and supervisor salaries of $42,150 for 3
xxTIMURxx [149]

Answer:

$77,000

Explanation:

Direct Labor = $52,350 (Its varies with the number of Production hours). Hence, $52,350   for 3,490 hours

For 3,800 hours, (52,350/3,490) * 3,800 = $57,000

Supervisor Salaries = $20,000 (Since the Supervisor Salary is not an incremental cost, it is a fixed one). So, the Supervisor Salaries remain $20,000

Net budget (flexible) = $57,000 + $20,000

Net budget (flexible) = $77,000

4 0
3 years ago
Below is the aging of receivables schedule for Evers Industries. Aging-of-Receivables Schedule November 30 Customer Balance Not
Murrr4er [49]

Answer:

uncollectible ammount expense 47,972 debit

            allowance for doubtful account    47,972 credit

Explanation:

Fro mthe talbe we are given the amount of account over-time fro meach customer.

As we are presented with all date we should proceed directly with the journal entry:

the aging method stated an allowance of       60,727

the current balance is for                            <u>     (12,755)   </u>

the adjustment will be for:                         <em>       47,972 </em>

5 0
3 years ago
State chartered banks are required to become members of the federal reserve system.
alex41 [277]
I think that any bank or incorporated banking institutions involved can become members.
3 0
3 years ago
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