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olga nikolaevna [1]
3 years ago
9

Based on the data below, how would the inventory appear on the balance sheet, assuming that the lower of cost or market is used

and the cost is determined by the First-in, first-out (FIFO) method?
Total cost: $248,000
Total market: $252,350
Lower-of-cost-or-market (LCM): $239,350
The inventory would appear in the current assets section, as follows:
Inventory-at cost (first-in, first-out method) X
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Check My Work
Remember that inventory is an asset account. The method of determining the cost of the inventory and the method of valuing the inventory is also reported
Learning Objective 6
Business
1 answer:
Mashcka [7]3 years ago
8 0

Answer:

On the balance sheet, the inventory would appear as:

Inventory $248,000

Explanation:

In the notes to the accounts, the method of determining the cost and the method of valuing the inventory would be disclosed.  It is not disclosed on the balance sheet, but on the notes to the accounts.

It would make the balance sheet appear unorganized to include details that should have been included in the notes.  The presentation of information is very important in order to ensure that those reading the information understand it.  Understanding is not aided by including information that could be displayed elsewhere.

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How do changes in the environment affect businesses and thus consumers?
fiasKO [112]

Answer:

If the environment changes then the businesses will make products you need in that environment so consumers will buy more of that product because they need it. For example, if it's summer you need new summer clothes so companies will start to make summer clothes so people will buy them instead of winter or fall clothes because of the environment. So businesses are getting money and the consumers are getting what they need or want.  

8 0
2 years ago
Swifty Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each produc
Katen [24]

Answer:

$10.60 per direct labor hour

Explanation:

Calculation for the overhead rate

First step is to calculate the Direct labor hours for car wheels using this formula

Direct labor hours for car wheels = Estimated wheel produced * Direct labor hour per wheel

Let plug in the formula

Direct labor hours for car wheels= 40,000 * 1

Direct labor hours for car wheels= 40,000 hours

Second step is to calculate Direct labor hours for Truck wheels using this formula

Direct labor hours for Truck wheels = Estimated wheel produced * Direct labor hour per wheel

Let plug in the formula

Direct labor hours for Truck wheels= 10,000 * 3

Direct labor hours for Truck wheels= 30,000 hours

Third step is to calculate the Total direct labor hours

Total direct labor hours = 40,000 + 30,000

Total direct labor hours=70,000 hours

Now let calculate the Overhead rate using this formula

Overhead rate = Total estimated overhead costs / Total direct labor hours

Overhead rate= $742,000 / 70,000 hours

Overhead rate= $10.60 per direct labor hour

Therefore Overhead rate is $10.60 per direct labor hour

8 0
3 years ago
Quantity (Units) Private Value (Dollars) Private Cost (Dollars) External Cost (Dollars)
bija089 [108]

Answer:

c. there is a negative externality.

Explanation:

At the time when one individual actions develops the benefits for others but at the same time they dont pay so it is to be known as positive externality

At the time when one individual action develops loss but the other who received the loss because of the action of the person so for this they didnt get the compensation so it is the negative externality

As we can see that there is three types of values so the correct option is c.  

3 0
3 years ago
The management at ABC Computers believes that high sales will result in high profit. Together with the company sales force, mana
dimaraw [331]

Answer:

<u><em>Sales</em></u>-Oriented

Explanation:

A Sales-Oriented Company's main focus is on <em>producing a sales team to advertise and market their products or  services.</em>

Generally, such strategies are made through door-to-door sales, telephone conversations,  and other encounters with prospective customers or opportunities.

The sales team is typically the business's greatest resource and the <em>primary driver of its growth and  productivity.</em>

7 0
3 years ago
Budgeted Sales for January: 8,000 Units Budgeted Sales for February: 10,000 Units Budgeted Sales for March: 12,000 Units Beginni
blondinia [14]

Answer:

Production= 10400 units

Explanation:

Giving the following information:

Budgeted Sales for January: 8,000 Units

Budgeted Sales for February: 10,000 Units

Budgeted Sales for March: 12,000 Units

Beginning Finished Goods for January: 3,000

Units Pevensie Inc. plans to have an ending finished goods inventory of 20% of next month's projected sales.

We will assume that the ending finished goods of January reaches 20% required for February.

<u>February:</u>

(+)Budgeted Sales for February= 10,000 Units

(+)Ending finished goods= 12000*0,20= 2400 units

(-)Beginning finished goods inventory= 2000 units

Production= 10000+2400-2000= 10400 units

8 0
3 years ago
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