The valid reason for selling the stock now is that the -Courtney is concerned that the value of the stock will decline in the near future.
Explanation:
Courtney has invested in RAD, Inc. stock nine months back .Now she is considering tax planning strategies at the end of the year and is pondering whether or not to sell her investment in the stock.
A friend has advised Courtney that she should hold the stock for at least three more months in order to have a long-term holding period. but the consideration of Courtney that the value of the stock will decline in the near future is the reasons why she was to sell the stock at the earliest despite taking her friends advice
Answer:
Supplies Used = $2475
Explanation:
<u>Bruce Company</u>
Supplies Purchases $4,300
Supplies on hand $1,825
Supplies Used = $ 4300- $ 1825 = $2475
The amount of Supplies used ( $ 4300- $ 1825 = $2475) will be shown in the income statement as an expense and the amount of unused supplies or Supplies on hand $1,825 will be shown in the Balance sheet as an asset account. The both of which will total the supplies actually purchased.
The relating <u>adjusting entry </u>will be
Supplies Expense $ 2475 Debit
Supplies Account $ 2475 Credit
This means the supplies of the amount $ 2475 have been used and is recorded as an expense in the income statement. It will be deducted from the gross profit. The remaining amount $ 1825 is for future use so recorded as an asset in the Balance Sheet and added to the total assets.
Answer:
Material quantity variance
= (Standard quantity - Actual quantity) x Standard price
After the adjustment for missing order
Material quantity variance
= (1.25 x 5,000 - 6,200) x $1.50
= $ 75( F)
The correct answer is A
Explanation:
Material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price. Standard quantity is standard quantity per unit multiplied by units made. Since the units made are now 5,000 units. Standard quantity will be 1.25 multiplied by 5,000 units.
Answer:
Unit value would be $24
Explanation:
Lower of cost is the method which is described as where the inventory that should be recorded at the lowest or the net realizable value (NRV). This method is linked with the principle or the guideline of conservatism.
When Ross is applying the method of lower of cost or net realizable value, to the ending inventory, the unit value would the cost per unit that is $24 and the selling price which is to be taken is $9 as it is the lowest.
