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iVinArrow [24]
2 years ago
10

Sheridan Company applied FIFO to its inventory and got the following results for its ending inventory. Cameras 113 units at a co

st per unit of $61 Blu-ray players 153 units at a cost per unit of $77 iPods 133 units at a cost per unit of $86 The net realizable value of each of these products at year-end was cameras $74, Blu-ray players $50, and iPods $78. Determine the amount of ending inventory at lower-of-cost-or-net realizable value. Ending inventory $
Business
1 answer:
ICE Princess25 [194]2 years ago
8 0

Answer:

Ending inventory is <u>$24,917</u>.

Explanation:

Lower-of-cost-or-net realizable value method implies that whichever is lower between the cost per unit and the net realizable value per unit is used to value the ending inventory of an item.

The ending inventory can therefore be determined as follows:

<u>For Cameras:</u>

Units = 113

Cost per unit = $61

net realizable value per unit = $74

We choose cost per unit since it is lower and we have:

Cameras ending inventory = 113 * $61 = $6,893

<u>For Blu-ray players:</u>

Units = 153

Cost per unit = $77

net realizable value per unit = $50

We choose net realizable value per unit since it is lower and we have:

Blu-ray players ending inventory = 153 * $50 = $7,650

<u>For iPods:</u>

Units = 133

Cost per unit = $86

net realizable value per unit = $78

We choose net realizable value per unit since it is lower and we have:

iPods ending inventory = 133 * $78 = $10,374

<u>Calculation of ending inventory:</u>

Ending inventory = Cameras ending inventory + Blu-ray players ending inventory + iPods ending inventory = $6,893 + $7,650 + $10,374 = $24,917

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Answer:

The correct answer is D.

Explanation:

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Monopolistic competitive markets:

have products that are highly differentiated, meaning that there is a perception that the goods are different for reasons other than price;

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3 years ago
In working with a client named Fred, you realize that he did not report income that he should have on a return. Fred reported $1
Ksivusya [100]

Answer:

b) Fred must maintain records for 6 years from the year the return was filed

Explanation:

A person that prepares tax is required by the Internal Revenue Service to keep tax returns and supporting documents for at least 3 years.

However when the tax preparer fails to report correct income amount they are required to keep records for at least the last 6 years.

The underreported income must be greater than 25% of the income.

In the given scenario the Fred reported $10,000 instead of $13,500.

The unreported amount is $3,500

Percentage not reported = (3,500 ÷ 13,500) * 100 = 25.925%

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8 0
3 years ago
If a firm has retained earnings of $2.7 million, a common shares account of $4.7 million, and additional paid-in capital of $9.4
kodGreya [7K]

Answer:

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Changes in account.

Computation:

1. Change in retained earnings

Change in retained earnings = Retained earnings - (Retained earnings - Common shares account - Additional paid-in capital)Stock dividend

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Change in retained earnings = $2.7 million - 1.68 million

Change in retained earnings = $1.02 million (Decrease)

2. Change in common shares account

Change in common shares account = Common shares account (1+Stock dividend)

Change in common shares account = $4.7 million (1+10%)

Change in common shares account = $5.17 million (Increase)

3. Change in additional paid-in capital

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3 0
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6 0
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