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4 years ago

The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the:

Business

1 answer:

scoray [572]4 years ago

8 0

Answer:

d. Specific identification method.

Explanation:

The specific indentification method relies on the specific categorization of the ending inventory, by attaching the date or purchase and the exact cost to every item of the ending inventory.

As it can be seen, the method is very accurate, because it can give the real value of ending inventory at the end of the year. However, it is also very time-consuming and difficult to keep up with, and for this reason most companies only use this method for items that are valuable, or that can be easily categorized in a specific date and price.

Most companies use other inventory valuation methods like LIFO, FIFO, and weighted average.

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During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $225,51

Kryger [21]

Answer:

The inventory would be increased by $55,283 and the profit has been decreased by the same amount.

Explanation:

The reason is that the closing inventory has been increased by the difference of the correct and incorrect amount which is:

Closing inventory difference = $225,513 - $170,230 = $55,283

This will increase the closing inventory in the balance sheet and the increase in the closing inventory will decrease the cost of goods sold. The lower the cost of goods sold the greater is the profit.

6 0

4 years ago

Suppose that each 0.1-percentage-point increase in the equilibrium interest rate induces a $3 billion decrease in real planned i

kirill115 [55]

Answer and Explanation:

(1) Decrease in investment = Decrease in money supply / Investment multiplier

= $60 billion / 5 = $12 billion

Real planned investment will decrease by $12 billion

The Federal Reserve decreased money supply by 60 billion and we wish to determine by how much this would affect real planned investment. We have therefore applied the investment multiplier to determine decrease in real planned investment. This is based on Keynes' theory of investment multiplier

8 0

3 years ago

Serena is a 40-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2018 Schedule C

Oliga [24]

Answer:

$5,624

Explanation:

Data provided in the question:

Reported schedule C net profits = $5,624

Health insurance premiums paid = $7,545

Long-term care insurance premiums paid = $600

Now,

The total health care premium

= Health insurance premiums paid + Long-term care insurance premiums paid

= $7,545 + $600

= $8,145

But Serena's health care deduction is limited Reported schedule C net profits

Therefore,

Serena’s self-employed health care deduction will be $5,624

8 0

3 years ago

Problem 2 (9 points) The following information was taken from the income statement and balance sheet of The Perryman Company for

Len [333]

Answer and Explanation:

The computation is shown below;

The net profit margin is

= Net income ÷ sales revenue

= $184,000 ÷ $574,000

= 32%

The asset turnover is

= Sales revenue ÷ average of assets

= $574,000 ÷ ($2,142,000 + $1,998,000) ÷ 2

= $574,000 ÷ $2,070,000

= 0.28 times

c. The return on assets is

= Net income ÷ average of assets

= $184,000 ÷ $2,070,000

= 0.089

= 8.89%

3 0

3 years ago

The top-down approach to computing the operating cash flow:

Ludmilka [50]

Answer:

a. ignores non cash expenses

Explanation:

The operating cash flow refers to the day to day operating activities which reflect the cash outflow and cash inflow

The formula to compute the operating cash flow by top-down approach is shown below:

Operating cash flow = Sales revenue - Cost of goods sold - Taxes

It does not considered any depreciation or amortization expenses.

5 0

3 years ago