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OLEGan [10]
3 years ago
10

Bedrock Company reported a December 31 ending inventory balance of $412,500. The following additional information is also availa

ble:
1. The ending inventory balance of $412,500 included $72,100 of consigned inventory for which Bedrock was the consignor.
2. The ending inventory balance of $412,500 included $22,200 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year.
Based on this information, the correct balance for ending inventory on December 31 is ______.
Business
2 answers:
enyata [817]3 years ago
7 0

Answer:

The correct balance for ending inventory on December 31 is $390,300

Explanation:

Consignment is arrangement where a consignor (the owner of goods) transfers goods to the consignee(the agent) such that the agent can sell the goods on-behalf of the original owner,hence the consigned goods belong to Bedrock Company and have been correctly treated by including them in the closing inventory.

The office supplies are not part of inventory, they are simply consumables for office use,which means they can should be deducted from closing inventory.

Closing inventory                    $412,500

less office supplies                 ($22,200)

Adjusted closing inventory    $390,300

belka [17]3 years ago
3 0

Answer:

The correct Ending Balance = $ 390300

Explanation:

Ending Balance of inventory = $ 412500

Less Office Supplies   = $22,200

The correct Ending Balance = $ 390300

Goods already cosigned are the consignor's inventory unless they are sold. They are not included in the consignee's inventory. So they will be included in the ending inventory.The office Supplies are not the inventory goods. They are daily expense goods and are not included in the inventory.

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On January 1, 2013, Craig Company paid the premium on a four-year insurance policy in the amount of $12,000. At that time, the f
Dima020 [189]

Answer:

option (C) $3,000

Explanation:

Data provided:

Policy duration = 4 years

Policy amount = $12,000

Date on which premium is paid = January 1, 2013

Date on which entry is adjusted = December 31, 2015

Now,

The time passed between January 1, 2013 to December 31, 2015 = 3 years

Therefore,

Amount to be recognized as insurance exp. on December 31, 2015

= \$12,000\times\frac{\textup{Time elapsed}}{\textup{Total policy duration}}

= \$12,000\times\frac{\textup{3}}{\textup{4}}

= $9,000

Thus,

The balance in the prepaid insurance account = $12,000 - $9,000 = $3,000

Hence,

The correct answer is option (C) $3,000

3 0
3 years ago
Mountain Teas wants to raise $14.9 million to open a new production facility. The company estimates the issue costs for legal an
ololo11 [35]

Answer:

612,936 shares

Explanation:

The computation of the number of shares of stock must be sold is shown below:

Before that we have to compute

Required sales proceeds net of spread is

= (Raise amount + estimated cost for  legal and accounting fees) ÷ (1 - spread rate)

= ($14.9 million + $582,000) ÷ (1 - 0.0815)

= ($1,5482,000) ÷ (1 - 0.0815)

= $16,855,743.06

So, shares to be sold is

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8 0
2 years ago
Flesch corporation produces and sells two products. in the most recent month, product c90b had sales of $26,100 and variable exp
julia-pushkina [17]

Flesch Corporation produces and sells two products, in case if there is any shift in the sales from product Y45E to C90B, then the breakeven will also decrease, since the contribution margin for Product C90B is less than the Product Y45E.

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Product C90B:

=(26100-9135) ÷ 26100

= 35%

Product Y45E:

= (33540-15093) ÷ 33540

= 45%

Since the contribution margin of Product C90B < Product Y45E, the breakeven will decrease.

5 0
3 years ago
Six months after starting a quilting business with a partner, Penny finds that actual revenues are significantly lower than proj
pychu [463]

Answer:

escalation of commitment

Explanation:

Penny invest into the business additional funds ignoring the expected outcome of the business (the future returns are not expected to increase)

Penny is not doing the proper analysis of the past six month

The invested funds, time and other resources should not be considered they are sunk cost. The 50,000 will increase the losses not cut them as the return are not going to improve. Additional funds should be invested when there is a financial need due to other project which required more lverage and not to make up for revenues falling behind budget

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5 0
3 years ago
Read 2 more answers
Bank of America uses a complex polling system coupled with a customer response measurement system to assess consumers' responses
vlabodo [156]

Answer:

The correct answer is letter "E": Voice-of-customer.

Explanation:

The voice-of-customer poll is helpful for firms to find out what the point of view of their customers is. This type of poll allows companies to know in deep the level of satisfaction with the products being offered and what the perception of the customers is based on the product provided by them. With this feedback, firms can make adjustments to provide clientele what they are looking for, which may increase the company revenues.

5 0
3 years ago
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