Answer:
Anne Traylor Inc.
Calculating Lower-of-Cost-or-Net Realizable Value
The inventory cost to report on the balance sheet on June 30, 2020, assuming that the company applies the lower-of-cost-or-net realizable value rule to each individual inventory item is:
= $8,990.
Explanation:
a) Data and Calculations:
Inventory Quantity Selling Cost NRV Inventory Lower-of-Cost-or-
Item Price to Sell Cost Net Realizable Value
#100 70 $24 $5 $19 $16 $1,120 ($16 * 70)
#101 100 22 4 18 17 1,700 ($17 * 100)
#115 50 35 6 29 31 1,450 ($29 * 50)
#118 120 40 6 35 29 3,480 ($29 * 120)
#120 25 18 4 14 10 250 ($10 * 25)
#128 45 30 8 22 26 990 ($22 * 45)
Total $8,990
Answer:
Dividend paid to preferred stock holders = 6% x $10 x 30,000 = $18,000
Dividend paid to common stock holder = $40,000 - $18,000 = $22,000
Explanation:
The dividend paid to preferred stock holders is a function of dividend rate, par value and number of preferred stocks outstanding.
The dividend paid to common stock holders is the difference between total dividend declared and dividend paid to preferred stock holders.
Answer:
A decrease in labor force participation rate
Explanation:
The workers which are discouraged can opt out of the labor market since there is no incentive for them work anymore. The workers choosing to go out of the labor market will decrease the overall labor force participation rate. The unemployment rate can also be affected but the main effect would be on labor force participation rate
Answer and Explanation:
a. The Journal entries are shown below:-
Investment - Capital stock Dr, $51.5 million
To Cash $51.5 million
(Being investment is recorded)
Unrealized holding gain or loss Dr, $15.5 million ($51.5 - $36.0)
To Fair value adjustment $15.5 million
(Being fair value adjustment is recorded)
b. Unrealized holding gain or loss Dr, $5.5 million ($51.5 - $30.5 - $15.5)
To Fair value adjustment $5.5 million
(Being fair value adjustment before sale is recorded)
Cash Dr, $30.5 million
Unrealized holding gain or loss Dr, $21 million
To Investment - Capital stock $51.5 million
(Being sale of investment is recorded)
Answer:
Cost of goods sold as per average cost method = $92,458.5
Explanation:
As for the information provided as follows:
Opening Inventory 265 units @ $153 each = $40,545
Purchase 465 units @ $173 each = $80,445
Purchase 165 units @ $213 each = $35,145
Total data 895 units = $156,135
Average cost per unit = $156,135/895 = $174.45
In average cost method simple average is performed, whereas in weighted average weights are assigned.
Sale is of 530 units
Cost of goods sold as per average cost method = $174.45 
530 = $92,458.5
