Answer:
Explanation:
When the future revenue producing ability of the inventory is above its original cost the
companies should reports their inventory value with LCNV method.
Answer:
$ 2,504,000
Explanation:
Budgeted overhead= $2,375,000
FOH budget variance= $129,000
Actual amount of fixed overhead= $2,375,000+$129,000
=$ 2,504,000
Therefore the actual amount of fixed overhead will be $ 2,504,000
Payback period is the length of time a project recovers back
the money invested.
Payback period= invested cash/ Net annual cash flow
Therefore payback period
=40,000/5000
=8.0 years
Since depreciation is a non- cash
expense it is ignored while calculating payback period.
Answer:
If it was likely or probable that the farm co-op would meet the benchmark and get the discount (or rebate), then the journal entry should recognize that. But since it is very doubtful that the benchmark will be met, then the journal entry should be made without considering any type of discount.
I looked for a similar question in order to find the missing numbers:
each trencher is sold at $3,600 and costs $2,000
August 10, 2019, 16 mini trenchers sold to farm co-op
Dr Accounts receivable 57,600
Cr Sales revenue 57,600
Dr Cost of goods sold 32,000
Cr Inventory 32,000
