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Gnesinka [82]
3 years ago
15

At December 31, Hardball Company has ending inventory with a historical cost of $316,000 and the company uses the perpetual inve

ntory system. The current replacement cost of the inventory is $306,500 with a net realizable value is $325,000. The normal profit on this inventory is $25,000. Before any adjustments at the end of the period, the cost of goods sold account has a balance of $450,000. Which of the following journal entries is required on December 31 to adjust the ending balance of inventory if the direct method is used to record the lower of cost or market write down?
a. Cost of Goods Sold $9,000 $9,000
Inventory
b. Inventory Cost of Goods Sold $9,000 $9,000
c. Cost of Goods Sold $9,500 $9,500 Inventory
d. Loss on inventory write down Inventory $9,500 $9,500
Business
1 answer:
zlopas [31]3 years ago
3 0

Answer: c. Cost of Goods Sold $9,500 $9,500 Inventory.

Explanation:

The journal entries that is required on December 31 to adjust the ending balance of inventory if the direct method is used to record the lower of cost or market write down will be gotten as the difference between the historical cost of the ending inventory and the current replacement cos of inventory. This will be:

= $316000 - $306500

= $9500

Therefore, the journal entry will be:

Debit: Cost of Goods Sold $9,500

Credit: Inventory $9,500.

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If a good's production process results in pollution and the government taxes producers to pay for cleanup costs, then :______
Lapatulllka [165]

Answer:

c. supply will decrease.

Explanation:

If a good's production process results in pollution and the government taxes producers to pay for cleanup costs, then supply will decrease.

Generally, when consumers of a particular product notices that the product has an adverse effect on the environment (pollution) or it is a product that causes environmental degradation, they are most likely to stop demanding or buying such products. Consequently, as the demand for such goods falls or decreases; there would be a fall in the supply of such goods. This is so because the demand for goods and services is directly proportional to the amount of quantity supplied.

8 0
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Which of the following marketing variables is concerned with design, quality,
Daniel [21]

Answer:

A. Product APEX

Explanation:

This is the correct answer.

3 0
3 years ago
Margot's Deli Company has the following information for July. Cost of materials placed in production $30,000 Direct labor 25,000
matrenka [14]

Answer:

cost of goods manufactured= $68,400

Explanation:

Giving the following information:

Cost of materials placed in production $30,000

Direct labor 25,000

Factory overhead 14,000

Work in process inventory, July 1 2,900

Work in process inventory, July 31 3,500

<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

<u></u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 2,900 + 30,000 + 25,000 + 14,000 - 3,500

cost of goods manufactured= $68,400

8 0
3 years ago
Suppose Potter Ltd. just issued a dividend of $2.50 per share on its common stock. The company paid dividends of $2.00, $2.07, $
Bogdan [553]

Answer:

Explanation:

Using dividend growth model formula for finding dividend per year can be used to find the growth rate per year;

The formula would be D1 = D0(1+g)

and D2 = D1(1+g)

D3 = D2 (1+g)  and so on....

Starting with 2.00 dividend,  <u>growth rate from yr1-yr2;</u>

2.07 = 2.00*(1+g)

Divide both sides by 2.00;

1+g = 2.07/ 2.00

1+g = 1.035

g = 1.035-1

g ( y1-y2) = 0.035 or 3.5%

<u>Growth rate from yr2-yr3;</u>

2.24 = 2.07(1+g)

Divide both sides by 2.07;

2.24/2.07 = 1+g

1.0821 = 1+g

1.0821-1 = g

g= 0.0821 or 8.21%

Therefore, g(y2-y3) = 8.21%

<u>Growth rate from yr3-yr4;</u>

2.34 = 2.24(1+g)

Divide both sides by 2.24;

2.34/2.24 = 1+g

1.0446 = 1+g

1.0446 -1 =g

g =0.0446 or 4.46%

Therefore, g(y3-y4) = 4.46%

<u>Growth rate from yr4-yr5;</u>

2.50 = 2.34(1+g)

2.50/2.34 = 1+g

1.0684 = 1+g

1.0684-1 = g

g=0.0684 or 6.84%

Therefore, g(y4-y5) = 6.84%

8 0
3 years ago
Personal finance and I need help
Alex777 [14]
A. It is decreased by 50,000 (I'm 50% sure)
6% of 50,000 is 3,000
3 0
3 years ago
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