Answer:
The interpretation of the particular context is provided in the subsection below on clarification.
Explanation:
- The cost of the products sold has become a reporting liability on either the cash flow statement.
- The cost of the goods offered for sale includes the cost of materials expenditures and the time to prepare such a component for selling price.
- The cost of the goods generated is measured using gross profit. Prices of the products sold are also known as selling costs.
Answer:
Explanation:
a. The computation of the ending inventory is shown below:
Inventory Quantity Cost NRV LCM Total inventory
(1) (2) (1 × 2)
Unit A 14 $38 $40 $38 $532
Unit B 22 $42 $39 $39 $858
Unit C 16 $27 $31 $27 $432
Unit D 19 $18 $17 $17 $323
Total $2,145
And total cost = Unit A × cost + Unit A × cost + Unit A × cost + Unit A × cost
= 14 × $38 + 22 × $42 + 16 × $27 + 19 × $18
= $532 + $924 + $432 + $342
= $2,230
b. The journal entry is shown below:
Income summary A/c Dr $85 ($2,230 - $2,145)
To Inventory A/c $85
(Being inventory is adjusted)
<u>Explanation:</u>
Payables control accounts helps to maintain each supplier account as a separate subsidiary ledger and reducing the amount of postings in the general ledger. Receivables control account is useful to maintain the credit sales through separate subsidiary ledger.
When there is a control account then the the trial balance of the firm can be easily prepared by seeing the general ledger.
Book keeping errors can also be identified by reconciling the balance on accounts payable and general ledger accounts.
Answer:
4,494.68
Explanation:
Formula
Fc = Ic (1+i) ^ n
Where;
Fc= Final Capital
Ic= Inicial Capital
i= interest rate
n= period
In this particular case:
Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6
Fc = 4,494.68
Answer:
It would be better to buy the car.
Nominal 26,446.81 (break even resale price)
Explanation:
We solve the present value of the salvage value at 6% APR
Maturity $28,000.0000
time 36.00
rate 0.00500
PV 23,398.0577
Net present worth:
23,398.06 - 43,000 = 19,601.94
Lease option
PV of the monthly payment:
C 505.00
time 36
rate 0.005
PV $16,599.8632
plus the 4,300 downpayment
present worth: -20.899,86
As the option from the purcahse gives a lower present worth it is preferable over the option to lease the vehicle
X - 43,000 = -20,899.86
X = 22,100.14
We have to look at which resale price the present value is equal to 22,100.14
Principal 22,100.14
time 36.00
rate 0.00500
Nominal 26,446.81
