Answer:
a. An audit adjustment is needed since the best case scenario, where the net realizable value is highest would result in $92,000 - $5,000 = $87,000.
b. the value of inventory must decerase by $99,000 - $87,000 = $12,000, so COGS must increase by that amount:
Dr Cost of goods sold 12,000
Cr Merchandise inventory 12,000
Answer:
D.
Explanation:
Marginal Utility puts a numerical value on the amount of satisfaction that a consumer gets from buying an additional unit of a product or service. Therefore based on this information it can be said that the information provided in the question indicates that in order to maximize utility, Ellie should buy more of Alpha and less of Beta, mainly due to the fact that the marginal cost of Alpha is double that of Beta and both cost the same price.
Answer:
(3) $3,750,000
Explanation:
The computation of the expect monthly sales to be as high is shown below:
Given that
Sales per month = $300,000
Royalty payments = 8% of sales
So, the expected monthly sales would be
= Sales per month ÷ Royalty payments percentage
= $300,000 ÷ 8%
= $3,750,000
We simply divided the sales per month by the royalty payment percentage i.e 8%
I believe that the kind of example that Yohann is setting is the importance of financial planning. So before Yohann lost his job, he was thinking ahead and set a lot of money aside throughout his working years for a rainy day. He couldn't predict that something bad like a recession was going to happen, but he was still prepared for it nevertheless. The other answers do not apply here.
