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Zigmanuir [339]
3 years ago
12

At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, acquired at

the following dates and unit costs:
Purchased in August: 30 units at $750 per unit.
Purchased in November: 30 units at $700 per unit.
A complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand.
Assuming that Anderson uses the LIFO flow assumption, it should record this inventory shrinkage by:

A. Debiting Cost of Goods Sold $7,000.
B. Crediting Cost of Goods Sold $7,500.
C. Debiting Cost of Goods Sold $7,500.
D. Crediting Cost of Goods Sold $7,000.
Business
1 answer:
omeli [17]3 years ago
6 0

Answer:

A. Debiting Cost of Goods Sold $7,000

Explanation:

The LIFO is a method used to account value for inventory. Under the method, the last item of inventory purchased is the first one sold.

At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, but a physical inventory taken at year-end indicates only 50 units of this product actually are on hand. So 10 units of the product was shrinkage.

The company should debit Cost of Goods Sold to record this inventory shrinkage.

Anderson Co. use LIFO method, the amount shrinkage product:

10 x $700 = $7,000

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Crane Company on January 1, 2018, granted stock options for 63000 shares of its $10 par value common stock to its key employees.
attashe74 [19]

The amount of compensation expense Crane should record for 2017 under the fair value method is $207000

<u>Solution:</u>

From the given,

Stock options for 63000 shares

$10 par value common stock

$25 per share and the option price was $20

Total compensation expense = $627000

On calculating we get,

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3 0
3 years ago
When each person specializes in producing the good in which he or she has a comparative advantage, total production in the econo
OLga [1]

Answer:

The correct answer is c) rises.

Explanation:

Each country in question will specialize in what is most efficient. At the same time, it will import the rest of the products in which they are most ineffective in terms of production. Although a country does not have an absolute advantage in producing any good, it may specialize in those goods in which it finds a greater comparative advantage and finally participate in the international market. In this sense, it can boost its foreign trade.

It is then the basic idea that countries choose to specialize in order to trade in activities where they have a certain advantage. That is, instead of producing what they do best in an absolute way, they produce what they do best in a relative way. Therefore, the difference with the theory of absolute advantage is that it does not produce what the country costs less, but the one with lower comparative costs.

7 0
3 years ago
During which time period was the annual rate of increase of the speed the greatest? a) from year 1 to year 2 b) from year 1 to y
muminat

The annual rate will increase with the greatest speed from year 1 to year 3.

<h3>What is the growth rate?</h3>

A growth rate is the proportion that changes the price of all goods and services produced in a country over a specific time period in comparison to a previous period.

The growth rate is used to measure the comparative fitness of an economic system over time. The numbers are commonly compiled and announced quarterly and annually.

From 1948 to 2021, the GDP Annual Growth Rate in the United States averaged 3.14 percent, with an all-time high of 13.4 percent in the fourth sector of 1950.

From the above declaration, it's clear that choice C, year 1 to year 3, is the proper option.

Learn more about Growth rate, refer to:

brainly.com/question/13776641

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Which of the following is not a cognate pizza hamburguesa sandwich perrito caliente
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The word that is not a cognate word is caliente
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2 years ago
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A person who routinely buys goods in good faith from a person who routinely sells such goods.
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