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3 years ago

7

In applying the lower of cost or net realizable value rule, the inventory of apparel would be valued at: A) $108,000. B) $90,000

. . C) $110,000. D) $99,000

1 answer:

Tanya [424]3 years ago

5 0

Answer:

Answer: b

Explanation:

NRV=$120,000 – ($120,000 x 10%) = $108,000$90,000cost is less than net realizable value of $108,000 cost

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During 2018, P Company discovered that the ending inventories reported on its financial statements were incorrect by the followi

const2013 [10]

Answer:

D. $30,000 overstated

Explanation:

Understatement of ending Inventory overstate the value of cost of Goods sold and understate the value of Net income and retained earning as well.

Overstatement of ending Inventory understate the value of cost of Goods sold and overstate the value of Net income and retained earning as well.

In 2016 the net income and retained earning was understated by $120,000.

In 2017 the net income and retained earning was overstated by $150,000.

Net Effect of both event in Retained earning at January 1, 2018

$150,000 overstated - $120,000 understated = $30,000 overstated

4 0

3 years ago

Your business has purchased 500 pizza pans, 60 kg of sauce, 100 kg of cheese, 2.5 kg of basil, 2.5 kg of oregano, 5 kg of yeast,

adelina 88 [10]

Answer:

400 pizzas

Explanation:

The complete question would be:

<em>You are going into the business of making pizzas. The following is the list of ingredients to make ONE pizza: </em>

<em>400 g flour 50 mL water </em>

<em>10 g yeast 120 g sauce </em>

<em>250 g cheese 5 g oregano </em>

<em>5 g basil </em>

<em>Your business has purchased 500 pizza pans, 60 kg of sauce, 100 kg of cheese, 2.5 kg of basil, 2.5 kg of oregano, 5 kg of yeast, and 200 kg of flour. You have as much water as you need. How many pizzas can you make? </em>

You are going to have to make a couple of conversions to do this. Since everything you need is indicated in grams, we first need to convert everything you have in grams.

There are 1,000 g in 1 kg. So now we convert them all:

60 kg of sauce

$60kg \times \dfrac{1,000g}{1kg} = 60,000g$

100 kg of cheese

$100kg \times \dfrac{1,000g}{1kg} = 100,000g$

2.5 kg of basil

$2.5kg \times \dfrac{1,000g}{1kg} = 2,500g$

2.5 kg of oregano

$2.5kg \times \dfrac{1,000g}{1kg} = 2,500g$

5 kg of yeast

$5kg \times \dfrac{1,000g}{1kg} = 5,000g$

200 kg of flour

$200kg \times \dfrac{1,000g}{1kg} = 200,000g$

So now that we know what we have, we determine how many pizzas we can make with the amount of each ingredient. We get the ratio of each ingredient to one pizza to determine how many we can make:

<u>Flour:</u>

Available: 200,000g

Needed: 400g

$200,000g\ of\ flour\times\dfrac{1\ pizza}{400g\ of\ flour} = 500\ pizzas$

<u>Yeast:</u>

Available: 5,000g

Needed: 10g

$5,000g\ of\ yeast\times\dfrac{1\ pizza}{10g\ of\ yeast} = 500\ pizzas$

<u>Cheese:</u>

Available: 100,000g

Needed: 250g

$100,000g\ of\ cheese\times\dfrac{1\ pizza}{250g\ of\ cheese} = 400\ pizzas$

<u>Basil:</u>

Available: 2,500g

Needed: 5g

<u /> $2,500g\ of\ basil\times\dfrac{1\ pizza}{5g\ of\ yeast} = 500\ pizzas$ <u />

<u>Sauce:</u>

Available: 60,000g

Needed: 120g

<u /> $60,000g\ of\ sauce\times\dfrac{1\ pizza}{120g\ of\ sauce} = 500\ pizzas$ <u />

<u>Oregano:</u>

Available: 2,500g

Needed: 5g

<u /> $2,500g\ of\ oregano\times\dfrac{1\ pizza}{5g\ of\ oregano} = 500\ pizzas$ <u />

We do not need to consider water, because it will provide as many as we will need.

So here we see that all but one ingredient is able to yield 500 pizzas. Cheese is the only one that yields less than 500, specifically 400 only. This is your limiting ingredient and this ingredient determines how many pizzas you can make. Because when you run out of cheese, you can no longer make a pizza.

4 0

3 years ago

A company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. Demonstrate the required adj

baherus [9]

Answer:

The required adjusting entry would be to debit the Interest <u>expense</u> account and <u>credit</u> the Interest<u> </u><u>payable</u> account.

Explanation:

The number of days that a loan debt stays unpaid is referred to as the outstanding number of days.

In line with the general accounting rules, all expenses must be debited. Therefore, the interest expense has to be debited.

Interest payable, however, is the amount owed to a lender by a firm and is thus credited as the matching journal entry to the interest expense.

Therefore, we have:

The required adjusting entry would be to debit the Interest <u>expense</u> account and <u>credit</u> the Interest<u> </u><u>payable</u> account.

6 0

3 years ago

The Appleton entity established a $200 Petty Cash fund on June 1, 200X. On June 30, 200X the fund had $45 in cash and the follow

Rashid [163]

Answer:

A. DR Petty Cash 200; CR Cash 200

Explanation:

We are asked for the entry on June 1st to stablish the petty cash fund.

The data on June 30th is irrelevant for this question.

We will only work with the information of june 1st

The ptty cash, will be an asset account. To crease an asset account we will debit it.

On credit side, we need to show how is this asset generated. In this case, with another asset, cash. Cash will be credited to show that 200 cash from the main account has been moved into the petty fund

4 0

4 years ago

The criteria that parties to a contract must be in agreement is also known as

irga5000 [103]

Answer:

C: Mutual Assent.

Explanation:

Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.

Hence, the criteria that parties to a contract must be in agreement is also known as mutual assent.

<em>In a nutshell, mutual assent connotes agreement, acceptance and consent to a contract by both parties. </em>

7 0

3 years ago