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____ [38]
3 years ago
11

Home Furnishings reports inventory using the lower of cost and net realizable value (NRV). Below is information for its year end

ed December 31, 2020. Inventory Quantity Unit Cost Unit NRV Furniture 200 $85 $100 Electronics 50 $400 $300 Calculate the value of Home Furnishings ending inventory using their methodology described above.
Business
1 answer:
solniwko [45]3 years ago
5 0

Answer:

1.$37,000

2.$32,000/

Explanation:

1. Calculation to the Cost of ending inventory before any adjustment

Inventory Quantity Unit Cost Total cost

Furniture 200* $85 = $17,000

Electronics 50* $400= $20,000

Cost of ending inventory before any adjustment =$37,000

Therefore the Cost of ending inventory before any adjustment will be $37,000

2. Calculation to determine the ending inventory using the lower of cost and net realizable value.

Inventory Quantity Unit NRV

Furniture 200* $100 =$20,000

Electronics 50* $300= $15,000

Total cost of ending inventory using lower of cost and net realizable value (NRV) $32,000

Therefore the ending inventory using the lower of cost and net realizable value will be $32,000

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Beachside Coffee Shop, in an effort to streamline its accounting system, has decided to utilize a cash receipts journal in its o
Kisachek [45]

Answer:

the available options for the question are,

A. Cash Cr. $18, Food Revenue Dr. $18,

B. Cash Dr. $18, Food Revenue Dr. $18

C.Cash Dr. $18, Food Revenue Cr. $18

D. Cash Cr. $18, Food Revenue Cr. $18

and the correct answer is C.Cash Dr. $18, Food Revenue Cr. $18

Explanation:

the answer is simple. once they implement the accounting system, all the transaction will have at least a double entry.

when a cash sale is made for $18, this is a revenue stream for the business, while the cash balance of the business increases as well. Revenue account is an income and an increase in income is treated as increase in credit while the cash balance is an asset, and the increase of the asset is treated as a debit.

if you look at options A, B and D, all of these transactions are either mixed up or have both credits or debits which is wrong, because of this, only the answer C is correct.

5 0
3 years ago
Old Corp. (target) merges into New Corp (acquiring) in a statutory Type A merger. What will the basis in Old Corp.'s assets be i
Murljashka [212]

Answer:

Carryover basis

In a Type A merger, the basis of the assets and liabilities carries over to the surviving entity.

Explanation:

5 0
3 years ago
Figure your taxable income, subtract the sum of lines 8 and 9 from line 7, and then enter that number here
Anna71 [15]

Answer:

22532

Explanation:

For this one you dont look at the w2 form. you have to look at the form you are filling out go up to question number 7 and 8 you will subtract those to answers that was filled in 34732-12200= 22532

sorry for the long explanation I was currently working on this and then I read the problem so many times but I feel slow so hope this helps

5 0
3 years ago
A portfolio is made up of stocks a, b, c, and d in the proportion of 20%, 30%, 25%, and 25% respectively. the nondiversifiable r
kow [346]

The portfolio beta would simply be the summation of the weighted average of each beta.

Where weighted average of each beta is calculated as:

Stock weighted average = Stock proportion * Individual beta

Therefore,

Stock A beta weighted average = 0.2 * 0.4 = 0.08

Stock B beta weighted average = 0.3 * 1.2 = 0.36

Stock C beta weighted average = 0.25 * 2.5 = 0.625

Stock D beta weighted average = 0.25 * 1.75 = 0.4375

The summation of all betas yield the overall portfolio beta:

Portfolio beta = 0.08 + 0.36 + 0.625 + 0.4375

<span>Portfolio beta = 1.5025 ~ 1.5</span>

4 0
3 years ago
At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year,
andre [41]

Answer:

Part 1

$9.60

Part 2

$11,129

Part 3

Journal 1

Debit : Overheads $172,500

Credit : Equipment lease $ 6,800

Credit : Depreciation on building 19,340

Credit : Indirect labor 90,400

Credit : Utilities 14,560

Credit : Other overhead 41,400

<em>Being overheads incurred</em>

Journal 2

Debit : Work In Process $173,760

Credit : Overheads $173,760

<em>Being overheads applied</em>

Part 4

under-applied overheads is $1,260

Part 5

$636,860

Explanation:

Overhead rate = Budgeted Overheads ÷ Budgeted Activity

                        = $129,600 ÷ 13,500

                        = $9.60

Total cost (Job K456)  = $2,750 + $5,355 + $3,024 = $11,129

Actual Overheads = $ 6,800 + $19,340 + $90,400 + $14,560 + $41,400 = $172,500

Applied overheads = 18,100 x $9.60 = $173,760

Since, Actual Overheads < Applied overheads, overheads have been under-applied. Amount of under-applied overheads is $1,260 ($173,760 - $172,500)

Under-applied overheads are added to cost of goods sold. Therefore, adjusted cost of goods sold will be $636,860 ($635,600 + $1,260)

7 0
2 years ago
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