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3 years ago

Data related to the inventories of Kimzey Medical Supply are presented below:

Business

1 answer:

DedPeter [7]3 years ago

3 0

Answer:

c. $155.

Explanation:

Kimzey Medical Supply's merchandise inventory:

Surgical equip. Surgical supplies Rehab equip. Rehab supplies

Selling price $335 $195 $415 $240

Cost $245 $165 $325 $237

Replacement $315 $155 $310 $233

cost

Net RV $275 $175 $375 $200

If we apply the lower of cost or market rule for determining the value of surgical equipment, its value would be: $155 because the replacement cost (or market price) is lower than the historical cost or the net realizable value.

When we use the lower of cost or market rule, we should value our inventory at the lowest value between original purchase cost, replacement (or market) price or net realizable value.

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Bluestone Company had three intangible assets at the end of the current year: a. A patent purchased this year from Miller Co. on

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Answer:

Acquisition cost

a. Patent: $6,000

b. Trademark: $4,000

c. Computer licensing rights: $42,000

2. Amortization for current year

a. Patent: $500

Annual Amortization charge = Cost / Estimated life = $6,000 / 12 = $500

b. Trademark: $0. Since it has an indefinite life.

c. Computer licensing rights: $7,000

Annual Amortization charge = Cost / Useful life = $42,000 / 6 = $7,000

3. Balance Sheet (Partial)

Assets

Intangible Assets=$44,500

($6,000 + $4,000 + $42,000 - $500 - $7,000)

Income Statement (Partial)

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Amortization expense=$7,500

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3 years ago

A chocolatier produces truffles and sells each 1 pound box of truffles for $20. However, the chocolatier knows that some consume

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Answer: Offering a discount to students and seniors will allow the chocolatier to know which types of consumers are likely to have a lower willingness to pay.

Here the price discrimination should be in respect with the demography i.e. allow the chocolatier to sell truffles to the consumer based on their age groups.

The correct option is (3).

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3 years ago

Commercial paper investments are ___. (Select all that apply.)

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Answer: Less than one year, guaranteed returns , and a money market product

What I put for my answer think its right

Explanation:

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3 years ago

One difference between a monopoly and a competitive firm is that A. a monopoly faces a downward sloping demand curve. B. a monop

AnnZ [28]

Answer:

A. a monopoly faces a downward sloping demand curve.

Explanation:

In business, it is seen to occur because they have no competition, monopolists have no incentive to improve their products. A lot of their focus is instead placed on maintaining monopolistic conditions through bribing their way and other tactics that dissuade competitors from entering the market.

Demand curve slopes downward, this is said to decreases with each unit of production beyond the profit maximizing quantity and in the eyes of the monopolist, cash is lost with each additional unit been produced, causing marginal cost exceeds marginal revenue. This causes the restricted output and higher costs that characterize products produced by monopolists.

Because the demand curve slopes downward, marginal revenue decreases with each unit of production beyond the profit maximizing quantity. Thus, the monopolist loses money with each additional unit produced, as marginal cost exceeds marginal revenue.

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3 years ago

On April 1, Townsley Company sold merchandise with a selling price of $10,000 on account to Trout Company, with terms 3/10, n/30

mamaluj [8]

Answer and Explanation:

The journal entry is shown below:

Cash $8,730

Sales Discount ($9,000 × 3%) $270

To Accounts receivable $9,000 ($10,000 - $1,000)

Here cash and sales discount is debited as it increased the assets and discount while on the other hand the account receivable should be credited as it reduced the assets

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2 years ago