Answer:
Cullumber Company
The ending inventory is:
= $4,888.
Explanation:
a) Data and Calculations:
Item Units Unit Cost Net Realizable Value Value of Ending
Cameras: Inventory (LCNRV)
Minolta 3 $172 $152 $456 ($152 * 3)
Canon 9 140 170 1,260 ($140 * 9)
Light meters:
Vivitar 13 130 100 1,300 ($100 * 13)
Kodak 16 117 128 1,872 ($117 * 16)
Total value of Ending Inventory based on LCNRV = $4,888
b) The Lower of cost- or net realizable value method of valuing ending inventory determines the value by choosing the lower value between the cost price of the inventory and the net realizable value. The purpose that is served by using the LCNRV method is that it reflects the decrease of inventory value when it goes below its original cost while at the same time it does not recognize the increased market value when the cost is lower.
Answer: B.it is often impossible to identify with precision where a product is in the product life cycle.
Explanation:
It is very hard to identify for sure where a product is in the life cycle for a myriad of reasons chief amongst them being the lack of sufficient data, external factors influencing data and misalignment with historical data.
Products go through four stages in product life style starting from introduction, growth, maturity and decline and pinpointing exactly where a product is can be affected by the aforementioned factors.
For example, products like natural food or yoghurt might be considered declining then due to renewed interest for whatever reason, they are rejuvenated and go back into a Growth phase.
Or in another example, the data of a product may be based on a stable economic period which does not hold anymore so the sales of the product cannot be expected to be the same and thus it can be wrongfully recategorized.
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Answer:
The question requires the answering party to pick all that apply as found in the attached.
A. The initial payment will be recorded as an increase to a Prepaid Insurance account.
B. Over time, the expired portion of the policy must be removed from the asset account as it has been used up and is no longer considered an asset.
C. As a portion of the policy expires, the expired portion will be removed and transferred to an expense account.
Explanation:
The initial payment will be recorded as increase to an asset account,prepaid insurance is a correct statement,pending when the insurance cost is cost,
Subsequently,the expired the portion of the prepayment would be removed from the account,hence point B is also correct.
Finally,when the expired portion is removed from prepaid insurance account,it is transferred to insurance expense account,point C is also on point.
