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Orlov [11]
3 years ago
10

Given the historical cost of product Dominoe is $22, the selling price of product Dominoe is $30, costs to sell product Dominoe

are $5, the replacement cost for product Dominoe is $20, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market?
Business
1 answer:
olga_2 [115]3 years ago
6 0

Answer:

Amount to be used to value inventory = $22

Explanation:

Inventories are generally valued at lower of cost or market value.

In that, cost is considered:

Net Realizable Value = Selling price less any cost = $30 - $5 = $25

Cost = $22

Since the Net Realizable Value is more than cost, replacement cost will not be considered.

Where NRV is less than cost, then replacement value is considered.

Here, Therefore inventory will be recorded as $22 at cost.

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Ivenika [448]

Answer:Ricardo works part time at a local computer store. One day, his manager approaches him about moving from cashier to floor supervisor. Ricardo is excited because the promotion comes with a raise; however, the extra work hours would take away from time with his friends. In the end, he decides to take the promotion. Ricardo's opportunity cost is choosing the promotion over time with his friends.

<u>Explanation:</u>

When there are many options in front of us.Out of these options when we select one we have to forgo the other options. While we forgo other options we have to bear the loss. So the opportunity cost is the cost of the next best option that we have given up.

if Ricardo works extra hours than he will not get time to spend with his friends so this is his loss which is arising due to the benefit he is getting from promotion. This loss will be his opportunity cost.

8 0
3 years ago
Larry is looking for ways to increase the number of different tasks that an employee performs without increasing task complexity
enot [183]

Answer:

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Explanation:

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6 0
3 years ago
Read 2 more answers
During the first year of Wilkinson Co.'s operations, all purchases were recorded as assets. Store supplies in the amount of $19,
kherson [118]

Answer:

b. increase expenses by $12,900

Explanation:

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2 years ago
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1 year ago
Volten Inc. is an apparel store. It has separate sections for casual wear, office wear, and party wear. It also has goods of var
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3 years ago
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