1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Debora [2.8K]
3 years ago
11

Cullumber Company uses the lower-of-cost-or-net realizable value basis for its inventory. The following data are available at De

cember 31. Item Units Unit Cost Net Realizable Value Cameras: Minolta 3$172$152 Canon 9140170 Light meters: Vivitar 13130100 Kodak 16117128 Determine the amount of the ending inventory by applying the lower-of-cost-or-net realizable value basis. The ending inventory $enter The ending inventory in dollars
Business
1 answer:
Anvisha [2.4K]3 years ago
4 0

Answer:

Cullumber Company

The ending inventory is:

= $4,888.

Explanation:

a) Data and Calculations:

Item      Units     Unit Cost     Net Realizable Value   Value of Ending

Cameras:                                                                       Inventory (LCNRV)

Minolta      3            $172                 $152                             $456 ($152 * 3)

Canon       9              140                   170                              1,260 ($140 * 9)

Light meters:

Vivitar      13              130                   100                              1,300 ($100 * 13)

Kodak     16               117                    128                              1,872 ($117 * 16)

Total value of Ending Inventory based on LCNRV =          $4,888

b) The Lower of cost- or net realizable value method of valuing ending inventory determines the value by choosing the lower value between the cost price of the inventory and the net realizable value.  The purpose that is served by using the LCNRV method is that it reflects the decrease of inventory value when it goes below its original cost while at the same time it does not recognize the increased market value when the cost is lower.

You might be interested in
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The
Furkat [3]

The calculated profit per unit for base-case, worst-case is, and best-case for the management of Brinkley corporation is:

  • $7
  • $3 per unit
  • $3 per unit

<h3>The Profit per unit for base-case:</h3>

45 - 1 1- 24 - 3 = $7

<h3>Profit per unit for worst case:</h3>

45 - 12 - 25 - 3 = $3 per unit

<h3>Profit per unit for best case:</h3>

45 - 10 - 20 - 3 = 12$ per unit

b. The mean profit per unit is given as $7.05

c. The reason the simulation approach is preferable is due to the fact that it can help to determine the probability of profit as a particular amount, unlike the what-if scenario analysis.

It can also create different scenarios for possible resources.

d. The probability of the fact that the profit per unit woul  be less than 5 is 9%

Read more on risk analysis here: brainly.com/question/6955504

5 0
2 years ago
Do you think it is easier to increase or decrease government spending
Anna35 [415]
It is much easier to increase government spending, because it gives a temporary boost, whereas decreasing it would take away the benefits you had before, and might mess up other "things" that relied on that part you just removed to decrease government spending.
4 0
3 years ago
If you sell only one or just a few items your business is
GarryVolchara [31]

Answer:

selling half

Explanation:

because your not selling everything so not all

5 0
3 years ago
When deciding to collect sample information rather than collecting information from the population, the amount of time required
Xelga [282]

True. L. L. L. L. L. L. L

6 0
3 years ago
Read 2 more answers
A Federally assisted disaster relief program is trying to streamline its services and provide one-stop shopping for residents wi
irakobra [83]
Based on the given situation above for those people who have special needs to be attended to, I can say that the business presented is very beneficial, but what makes it disadvantageous is the distance that will require these people with special needs to travel far. Therefore, this can only be permissible if the facility is located on a major public transportation route. Answer is D.
5 0
3 years ago
Other questions:
  • The U.S. preference for __________ economic policies helps to explain why we have a smaller and more limited government than do
    8·1 answer
  • The records for Sandhill Inc. showed the following for 2020: Jan. 1 Dec. 31 Accrued expenses $1,200 $2,100 Prepaid expenses 630
    15·1 answer
  • T or F 25 percent is a good interest rate on a used car?
    11·1 answer
  • During 2020 the DLD Company had a net income of $85,000. In addition, selected accounts showed the following changes: Accounts R
    8·1 answer
  • Ryan, age 57, is single with no dependents. In 2019, Ryan's principal residence was sold for the net amount of $400,000 after al
    13·1 answer
  • __________________ is a political system in which the government tolerates little or no opposition but permits nongovernmental c
    9·1 answer
  • With regard to the factors of production, "land" refers to which of these?
    15·1 answer
  • On January 1, 2019, Cullumber Company had $1,000,000 of common stock outstanding that was issued at par. It also had retained ea
    14·1 answer
  • Explain the meaning of rationalization, prototyping and design determination and give an example of each
    10·1 answer
  • Jacoby Company received an offer from an exporter for 25,400 units of product at $18 per unit. The acceptance of the offer will
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!