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3 years ago

Which cost flow assumption generally results in the highest reported amount for ending inventory when inventory costs are rising

Business

1 answer:

Sergio [31]3 years ago

8 0

Answer:

FIFO method (first in, first out)

Explanation:

When inventory costs are increasing, the FIFO method (first in, first out) results in the lowest cost of goods sold, which in turn result in the highest ending inventory value. On the other hand, the LIFO method (last in, first out) results in the highest cost of goods sold and the lowest ending inventory value. Goods purchased last will have a higher cost since the price of the merchandise increased during the year.

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The following data were selected from the records of Sykes Company for the year ended December 31, 2014.

stira [4]

Answer:

Sales Revenue: 316,000

Sales Discounts Taken: 2680

Sales Returns and Allowances: 4000

Bad Debt Expense: 1155

Explanation:

A. Sales Revenue- 235,000

B. Sales Revenue- 11,500

C. Sales Revenue- 26,500

D. Sales Returns and Allowances- 500

E. Sales Revenue- 24,000

F. Sales Discounts (Taken)- 220

G. Sales Discounts (Taken)

(Sales discounts (taken) $98,000 ÷ (1 - 0.02) = $100,000 gross sales; $100,000 × 0.02 = $2,000)

H. Sales Discounts (Taken)- 530

I. Sales Revenue- 19,000

J. Sales Discounts (Taken) - (70)

Sales Returns and Allownaces- 3500

M. Bad Debt Expense

Credit sales ($11,500 + $26,500 + $24,000 + $19,000) =$81,000

Less: Sales returns ($500 + $3,500)= 4,000

______________________________

Net sales revenue

77,000

Estimated bad debt rate

× 1.5 %

_____________________________

Bad debt expense

+$1,155

8 0

3 years ago

An income statement reports information over a period of time, indicating the financial progress of a business in earning a net

ch4aika [34]

Answer:

True

Explanation:

An income statement is among the three important financial statements that a business prepares at the end of every financial year. It is divided into three main sections of revenues, expenses, and income.

The revenue section lists all sources of revenues and any adjustments to obtain the net revenue. The expenses section shows all business expenses and their total. The income section is the difference between revenue and expenses. A positive income means the made profits, while a negative income indicates losses.

5 0

3 years ago

1. Sam orders 40 cases of beer from a Dutch distributor at a price of $40 per case. 2. A U.S. company sells 200 transistors to a

yawa3891 [41]

Explanation:

The computation is shown below:

The consumption is

= 40 cases × $40 per case

= $1,600

The import is also same i.e $1,600 because the purchase from Dutch distributor represents the consumption and imports for the United states economy.

Now the exporter is

= 200 transistors × $ 15

= $3,000

Now the net exports is

= Exports - imports

= $3,000 - $1,600

= $1,400

And, the consumption value is $1,100

The total economy consumption is

= $1,600 + $1,100

= $2,700

Now the GDP is

= Consumption + investment + government spending + net exports

= $2,700 + $0 + $0 + $1,400

= $4,100

4 0

3 years ago

K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $45,000 of personal cash to the partnership.

Elis [28]

Answer:

to record Decker's investment:

Dr Cash 45000

Cr Decker, Capital 45000

to record Rosen's investment:

Dr Land 10,000

Dr Building 75,000

Cr Rosen, Capital 85,000

to record Toso's investment:

Dr Cash 10,000

Dr Accounts Receivable 27,000

Dr Equipment 14,000

Cr Allowance for Doubtful Accounts 2,700

Cr Toso, Capital 48,300

total owners' equity = $178,300

6 0

3 years ago

h.Based on reading the section on Focus On Managerial Implications, discuss how much CSR and sustainability are related and how

Anon25 [30]

Answer:

Explanation:

CSR refers to the commitment by a company to practice environmental and social sustainability so as to be good stewards of the environment in which they operate. They relate with sustainability because sustainability describes the ability to maintain various processes and systems overtime. Some companies invest in CSR so as to sustain the profitability of the company.

On the otherhand, CSR differs from sustainability because sustainability is managed by operations and marketing whereas CSR investment is rewarded and mandated by the government.

Futhermore, Sustainability is forward by planning the changes a business might make so as to secure its future while Corporate social responsibility or CSR looks backwards by reporting on what a business has done in the last 12months.

Another difference between CSR and Sustainability is that CSR is about compliance while sustainability is about business.

Finally, CSR is driven by the need to enhance reputation in developed narkets while Sustainability is driven by the need to create opportunities in emerging markets.

7 0

3 years ago