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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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Given the following changes what is the net effect on cash? (1) Accounts Receivables increases by $150; Inventory decreases by $
Karolina [17]

Answer:

Net Cash Increase of $115

Explanation:

Receivable Increases by $150 means a cash outflow in receivable by $150 because Increase in Receivable indicates that there are more sale on credit is made than cash received from the customers. So, the outflow in the receivable section is more than the inflow.

Inventory Decreases by $95 means the inventory sold during the period is more than purchases / manufactured. It result in cash inflow as cash is not being held in the form of inventory.

Accounts Payable increases by $225 means that company is making less payment to its suppliers, so that its balance has been increase. Company made more purchases than payment made to suppliers. Net cash Inflow is observed from this.

Common dividend payment of $55 means a direct cash outflow because actual cash has been paid during the year.

Net Effect on Cash = Cash inflows - Cash outflows

Net Effect on Cash = ( Inventory decrease + Accounts Payable increase ) - ( Accounts Receivables increase + Common dividend payment )

Net Effect on Cash = ( $95 + $225 ) - ( $150 + 55 )

Net Effect on Cash = $320 - $205

Net Effect on Cash = $115

Net Cash Increase of $115

6 0
2 years ago
InSeason Inc. started a chain of organic supermarkets that had initial success. The managers achieved a mastery of the firm's cu
Ne4ueva [31]

Answer: resistance to change

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From the question, we are informed that InSeason Inc. started a chain of organic supermarkets that had initial success and that the managers achieved a mastery of the firm's current environment, thereby filling a need in the market.

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As a result of this tightly coupled system, InSeason developed a resistance to change. Resistance to change could be as a result of fear of failure by the company.

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The Supreme Court separated the "mandatory" element of the Federal Sentencing Guidelines for Organizations from their advisory r
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Answer:

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Federal Sentencing Guidelines should be guided by the following principles:

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