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3 years ago

The inventory of Royal Decking consisted of five products. Information about the December 31, 2021. Inventory is as follows:

Business

1 answer:

gizmo_the_mogwai [7]3 years ago

7 0

Answer:

Unit values are given below

Explanation:

The unit value Royal Decking should use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory can be calculated as follows

Product Cost Replacement NRV NRV - NP Market Inventory Value

A $46 $41 $57.10 $40.60 $41 $41

B $86 $76 $91.10 $64.60 $76 $76

C $46 $61 $75.10 $53.60 $61 $46

D $106 $76 $117.10 $83.10 $83.10 $83.10

E $26 $34 $31.10 $22.10 $31.10 $26

Woking (NRV)

NRV = Selling price -Sales commission - Shipping cost

Product A ($66 - [$66*10%] - [$46*5%]) = $57.10

Product B ($106 - [$106*10%] - [$86*5%]) =$91.10

Product C ($86 - [$86*10%] - [$46*5%]) =$75.10

Product D ($136 - [$136*10%] - [$106*5%]) =$117.10

Product E ($36 - [$36*10%] - [$26*5%]) =$31.10

Working (NRV - NP )

Product A ($57.10 - [$66*25%]) = $40.60

Product B ($91.10 - [$106*25%]) = $64.60

Product C ($75.10 - [$86*25%]) = $53.60

Product D ($117.10 - [$136*25%]) = $83.10

Product E ($31.10 - [$36*25%]) = $22.10

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Product - The end product that is offered for sale.

Price – The value set for the finished good for selling.

Place – Direct or indirect markets.

Promotion – Public relations, advertising, etc.,

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3 years ago

"Which of the following statements are TRUE? I New issues of Treasury Bills are generally priced at par II New issues of Treasur

Aleksandr [31]

Answer:

The remaining part of the question is:

Which of the following statements are TRUE?

I New issues of Treasury Bills are generally priced at par

II New issues of Treasury Bonds are generally priced at par, or at a slight discount to par

III New issues of Agency Bonds are generally priced at par, or at a slight discount to par

A. I only

B. III only

C. II and III only

D. I, II, III

Correct Answer:

C. II and III only

Explanation:

It is a fact that virtually all new issues of T-Bills are always sold at a discount to par value. These are original issue discount obligations, with the accrued value of the discount being the interest income earned on these securities.

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3 years ago

You have $135,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $49,000.

cricket20 [7]

Answer:

a. Does this create a disbursement float or a collection float?

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3 years ago

Stonewall Corporation issued $52,000 of 5%, 10-year convertible bonds. Each $1,000 bond is convertible to 10 shares of common st

zalisa [80]

Answer:

A January 1, 2020

Dr Cash $54,600

Cr Bonds payable $52,000

Cr Premium on bonds payable $2,600

B. December 21 2022

Dr Bonds payable $52,000

Dr Premium on bonds payable $1,820

Cr Common stock $26,000

Cr Paid in capital in excess of Par $27,820

Explanation:

Preparation of the entry for Stonewall Corporation

A January 1, 2020

Dr Cash $54,600

($52,000+$2,600)

Cr Bonds payable $52,000

Cr Premium on bonds payable $2,600

(5%*$52,000)

(To record issue of bonds for premium)

B. December 21 2022

Dr Bonds payable $52,000

Dr Premium on bonds payable $1,820

(100%-30%*$2,600)

Cr Common stock $26,000

(52*10*50)

Cr Paid in capital in excess of Par $27,820

($52,000+$1,820-$26,000)

(To record conversion of bonds into Common Stock)

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3 years ago