Answer:
debit Work in Process Inventory, credit Raw Materials Inventory.
Explanation:
For reasons of accounting principles, the physical inventory must have priority to that of the continuous method; since the first constitutes information of greater objectivity and can therefore serve as a reference point to determine if there are missing or surpluses in the inventories, which after being well purified, can be adjusted through the cost of sale account and the inventory account accordingly if the permanent inventory turns out to be greater than the physical one, the cost of sale account must be <u>debited</u> for the amount of the difference, while the inventory account will receive a <u>credit</u> for the same value.
Answer:
Product 2005WSC should be reported at $127
Explanation:
Using the lower-of-cost-or-market, Carla Vista Company reports its Inventory at the <em>lower of</em> cost and net realizable value at the end of its financial period.
Cost per unit of 2005WSC is $ 127 (given)
<u>Net realizable value </u><u>per unit of 2005WSC is :</u>
Selling Price ( $127 × 1.40) $177.80
Less Estimated Cost to Sell ($6.00)
Net realizable value $ 171.80
<u>Conclusion :</u>
Therefore, the lower is Cost at $127
Thus product 2005WSC is measured at $127
Answer:
Which non-cash expense is added back to the net profit in the indirect method of preparing a cash flow statement? DEPRECIATION
The indirect method of preparing a cash flow statement adds a non-cash expense, such as DEPRECIATION and or AMORTIZATION, to the net profit.
Explanation:
Cash flow statement is a statement of account or financial statement prepared by firms or organisations that shows how money comes or flow into a company. It also shows the amount of money that a company receives from sales of their goods and services.
Cash flow statement also shows us the money invested my the company in outside ventures which is used for generating revenues for the company.
There are two methods of preparing Cash flow statements
a. Indirect method.
b. Direct method
The indirect method of preparing a cash flow statement involves stating the net income of the firm and then adding back non cash expenses such as Depreciation, Amortization back to the net profit. After which the determination of the actual inflow or outflow of cash from firm in carried out.
