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SCORPION-xisa [38]
2 years ago
10

Ben took some steps to use the concept of economies of scale in his company and failed. Which step caused his attempt to fail?

Business
1 answer:
nadezda [96]2 years ago
6 0

Answer:

it is A i hope it helps you on the test

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Home Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its y
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Answer:

$43,030

Explanation:

IAS 2 Inventories states that inventory is to be recognized at cost, however, subsequent measurement requires that inventory be carried at the lower of cost or net realizable amount (NRV).

As such, where the cost of inventory is higher than the NRV, it is written down to the NRV using the following entries,

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with the difference between the cost and the NRV.

Inventory Quantity   Unit Cost    Unit NRV   New unit cost

Furniture    230           $88             $103             $88

Electronics   53           $430           $315             $315

From the analysis above, the cost of inventory is lower than the NRV for Furniture, hence no adjustment is required. However, the cost of Electronics is higher than the NRV hence a write down is required. This amount is

= ($430 - $315) × 53

=$115 × 53

= $6,095

Total recorded cost(ending) of inventory before any adjustment

= (230 × $88) + (53 × $430)

= $43,030

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