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3 years ago

Royal Decking has five products in its inventory. Information about the December 31, 2021 inventory is below:

Business

1 answer:

wariber [46]3 years ago

5 0

Answer:

Royal Decking

A) Per unit value for each of Royal Decking's products, applying LCNRV:

Product Cost Sales Price NRV LCNRV

A $40 $60 $44 ($60 - 12 - 4) $40

B 80 100 $72 ($100 - 20 - 8) $72

C 40 80 $60 ($80 - 16 - 4) $40

D 100 130 $84 ($130 - 26 - 10) $84

E 20 30 $22 ($30 - 6 - 2) $20

B. Total Inventory on the balance sheet is:

$256,000

Explanation:

a) Data and Calculations:

Ending Inventory at December 31, 2021:

Product Cost Sales Price NRV LCNRV Inventory value

A $40 $60 $44 ($60 - 12 - 4) $40 $40,000

B 80 100 $72 ($100 - 20 - 8) $72 $72,000

C 40 80 $60 ($80 - 16 - 4) $40 $40,000

D 100 130 $84 ($130 - 26 - 10) $84 $84,000

E 20 30 $22 ($30 - 6 - 2) $20 $20,000

Total inventory value $256 $256,000

= ($256 * 1,000)

Selling costs = 20% of selling price

Shipping costs = 10% of cost

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Carpenters, Inc., a manufacturing company, acquired equipment on January 1, 2017 for $ 520 comma 000. Estimated useful life o

san4es73 [151]

Answer:

Annual depreciation= $47,618

Explanation:

Giving the following information:

Purchasing price= $520,000

Useful life= 7 years

Residual value= $20,000

New useful life= 9 years

First, we need to determine the annual depreciation and accumulated depreciation before January 2020.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (520,000 - 20,000)/7= 71,429

Accumulate depreciation= 71,429*3= $214,287

New annual depreciation:

Book value= 520,000 - 214,287= 305,713

Annual depreciation= (305,713 - 20,000) / 6

Annual depreciation= $47,618

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4 years ago

Company management completes event identification and analyzes the risks. The company wishes to assess its risk after management

r-ruslan [8.4K]

Answer:

Residual risk

Explanation:

Is a type of risk whose threat(s) is not completely removed even after putting all control measures in place. It is calculated as:

Residual risk = inherent risk minus effect of risk control.

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3 years ago

Consider the following hypothetical facts about Mexico: The peso recently lost over 40% of its value relative to the dollar. Ove

UNO [17]

Answer:

The annualized return of the investment is R=0.286 or 28.6%.

Explanation:

The expected value takes into account all the possible outcomes and their probabilities. In this case, there are only 2 possible outcomes:

1) Mexican government lose control of the economy. Probability: 25%.

2) The Mexican government don't lose contol of the economy. Probability: 75%

In the Case 1, the local stock market will fall by 10% and the peso will lose 20%.

The return in dollars can be calculated as:

$R=(1+\Delta SM)/(1-\Delta P)-1=(1-0.10)/(1+0.2)-1\\\\R=0.90/1.20-1=0.75-1=-0.25$

being ΔSM the return of the stock market and ΔP the apreciation of the peso.

For the Case 2, we have that the local stock market will rise by 5% and the peso will appreciate by 5%.

The return in this case is

$R=(1+\Delta SM)/(1-\Delta P)-1=(1+0.05)/(1-0.10)-1\\\\R=1.05/0.90-1=1.17-1=0.17$

Then, the expected value is:

$E(R)=\sum p_iR_i=p_1R_1+p_2R_2=0.25*(-0.25)+0.75*(0.17)\\\\ E(X)=-0.0625+0.1275=0.065$

The expected dollar return in the 90 days is R=0.065.

If we annualized, the annual rate of return of this investment is:

$R_a=(1+R)^{N/n}-1=1.065^{360/90}-1\\\\R_a=1.065^4-1=1.286-1=0.286$

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3 years ago

Private saving refers to ________. A) disposable income minus consumption expenditure B) total expenditure minus purchases of ca

nataly862011 [7]

Answer:

disposable income minus consumption expenditure

Explanation:

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3 years ago

Which of the following criteria would Ben think is the least important as he decides on a career to support his lifestyle

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What are the options?

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4 years ago