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3 years ago

Inventory may properly be stated above cost

Business

1 answer:

pentagon [3]3 years ago

5 0

Answer:

Explanation: Only in exceptional cases may inventories be stated above cost according to the Accounting Standards Codification. For instance, precious metals, which have a fixed monetary value with no substantial cost of marketing may be stated at its monetary value, which may be above cost; For agricultural, mineral, and other products that can be substituted for one another and have immediate marketability at quoted prices, it may be difficult to obtain appropriate costs leading to inventory being stated above costs.

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You have the following information for Crane Company for the month ended October 31, 2022. Crane uses a periodic method for inve

Mazyrski [523]

Answer:

Crane Company

1. Weighted average cost per unit = $25.032

2. (1) LIFO (2) FIFO (3) Average-cost

Ending inventory $1,580 $1,940 $1,752

Cost of goods sold 6,180 5,820 6,008

Sales revenue $9,150 $9,150 $9,150

Gross profit 2,970 3,330 3,142

Gross profit rate 32.5% 36.4% 34.3%

Explanation:

a) Data and Calculations:

Date Description Units Unit Cost or Selling Price Total

Oct. 1 Beginning inventory 50 $22 $1,100

Oct. 9 Purchase 110 24 2,640

Oct. 11 Sale (90) $35 $3,150

Oct. 17 Purchase 90 26 2,340

Oct. 22 Sale (50) 40 2,000

Oct. 25 Purchase 60 28 1,680

Oct. 29 Sale (100) 40 4,000

Total 310 (240) = 70 $7,760 $9,150

Weighted average cost per unit = $25.032

LIFO:

Ending inventory

= (50 * $22) + (20 * $24)

= $1,100 + $480

= $1,580

Cost of goods sold = $7,760 - $1,580 = $6,180

FIFO:l

Ending inventory:

= (60 * $28) + (10 * $26)

= $1,680 + $260 = $1,940

Cost of goods sold = $7,760 - $1,940 = $5,820

Weighted-average costs:

Ending inventory = 70 * $25.032 = $1,752

Cost of goods sold = $7,760 = $1,752 = $6,008

6 0

3 years ago

Explain how a firm's production function is related to its marginal product of labor, how a firm's marginal product of labor is

Ghella [55]

The price paid to each factor adjusts to balance the supply and demand for that factor. Because factor demand reflects the value of the marginal product of that factor, in equilibrium, each factor is compensated according to its marginal contribution to the production of goods and services.

<h3><u>Explanation:</u></h3>

The incremental profit that is being earned for an additional single unit by subtracting the price of the product and all the variable cost that is associated with that product is the marginal contribution. It is the earnings that is obtained in total for paying all fixed expense and also for the profit generation.

The price that is spent for the every factor in order to adjust balancing the supply and demand of that particular factor. This is because of the reason that, the value of the marginal product of any factor is controlled by the demand factor. Thus in an equilibrium state there will be a compensation of each factor based on the marginal contribution to the production of goods and services.

7 0

3 years ago

Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a

drek231 [11]

Answer:

The total cost of the units completed and transferred out of the department was: $324,900

Explanation:

First Calculate Total Cost per Equivalent Unit

Materials $2.00

Conversion $3.70

Total $5.70

Then, Calculate the Cost of Units Completed and Transferred

<em>Units Completed and Transferred × Total Cost per Equivalent Unit</em>

57,000 × $5.70

$324,900

7 0

4 years ago

The Supplies account had a balance at the beginning of year 3 of $8900 (before the reversing entry). Payments for purchases of s

Alex787 [66]

Answer:

supplies expense 47,300 DEBIT

supplies 47,300 CREDIT

Explanation:

$$$Beginning Inventory + Purchase = Ending Inventory + supplies Expense$

8,900 + 53,300 = 14,900 + supplies expense

8,900 + 53,300 - 14,900 = supplies expense

supplies expense = 47,300

Beginning and Purchase will be the supplies available during the period.

this supplies can be used or stored.

if the stored are 14,900 then the diference was used.

4 0

4 years ago

Christmas card sales increase during the last three months of the year, and the sale of fresh strawberries in the North increase

Korvikt [17]

Answer:

The difference occur because demand for Christmas cards increases and supply of strawberries increases.

Explanation:

During the peak sales period of the last three months of the year the sale of Christmas cards increases, while in the north the sale of strawberries increases in the early summer. But the price of Christmas card increases in its peak period of sale while the price of strawberries decreases.

This is because in the peak period the demand for Christmas cards is increasing, it causes the demand curve to shift to the right. This increases the equilibrium price level an equilibrium quantity.

In the peak period the supply of strawberries increase, this causes the supply curve to move to the right. As a result, there is an increase in the equilibrium quantity and a decrease in the equilibrium price.

5 0

3 years ago