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Oxana [17]
3 years ago
13

As a result of a thorough physical inventory, Oriole Company determined that it had inventory worth $320300 at December 31, 2018

. This count did not take into consideration the following facts: Herschel Consignment currently has goods worth $47200 on its sales floor that belong to Oriole but are being sold on consignment by Herschel. The selling price of these goods is $75300. Oriole purchased $21700 of goods that were shipped on December 27, FOB destination, that will be received by Oriole on January 3. Determine the correct amount of inventory that Oriole should report.
Business
1 answer:
DiKsa [7]3 years ago
4 0

Answer: $367500

Explanation:

The correct amount of inventory that Oriole should report is calculated below:

Worth of inventory per physical verification = $320300

Add: Cost of goods that are consigned to Herschel Corporation = $47200

Therefore, the amount of inventory that Oriole should report will be the addition of the inventory worth and the cost of goods consigned to Herschel:

= $320300 + $47200

= $367500

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If the monopolist's marginal revenue is greater than its marginal cost, the monopolist can increase profit by selling more units at a lower price per unit. In the case of higher MR , the maximum profit will come about at the level of where MR is equal to the MC. So in this case to increase the profit, MR i,e, also the price can be lower to the level of MC to sell more commodity and earn higher profits.

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a)        NA                                         - $6,400 AP

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c)     -$6,528 cash                         -$6,400 NP                                 NA

                                                      -$128 interest p.                  

         revenue                  -                expenses                  =             income

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b)       $0                                           $128                                        -$128

c)       NA                                            NA                                           NA

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