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mezya [45]
3 years ago
9

A. Given the historical cost of product Z is $20, the selling price of product Z is $25, costs to sell product Z are $3, the rep

lacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the market value that should be used in the lower-of-cost-or-market comparison?
a. $18.
b. $20.
c. $21.
d. $22.
B. What is the amount that should be used to value the inventory under the lower-of-cost-or-market method?
a. $18.
b. $20.
c. $21.
d. $22.
Explain your work for both parts to get a thumbs-up.
Business
1 answer:
Vlada [557]3 years ago
6 0

Answer:

1.

c. $21

2.

b. $20

Explanation:

1.

In lower-of-cost-or-market comparison, the cost of the product and the realizable value of the product are compared and lower is used to value the available inventory.

In the given Scenario the realizable value of product Z is the recoverable value of the product.

Hence The replacement value of $21 should be used in the lower-of-cost-or-market comparison.

2.

Calculate the net recoverable value for the product Z

Net recoverable value = Selling price of product Z - Cost to sell product Z

Net recoverable value = $25 - $3 = $22

Now by comparing the cost and net realizable value the lower value is cost of $20.

Hence $20 will be used in order to value the inventory.

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andre [41]

Answer:

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Income Statement

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Assume that one year ago, you bought 130 shares of a mutual fund for $27 per share, you received an income distribution of $0.12
Anika [276]

Answer:

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Now, we calculate the change in market value

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Therefore,

Dollar amount of total return = $44.2 + (-$390)

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6 0
4 years ago
Which of the following is a potential benefit of inflation?
Vsevolod [243]
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During inflation, the average cost of the products that exist in the market would be increased.Because of this, the average net income of the businesses that produced it will also be increased.
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4 years ago
Whirly Corporation’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (8,000
yarga [219]

Answer:

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Explanation:

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Contribution Margin  x Δ sales = Δ income

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AysviL [449]

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