Answer:
Cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold.
Explanation:
Cost of goods available for sale can be described as the <u>maximum amount</u> of inventory, stock, or goods that is possible for a firm to sell during an accounting period. It is the maximum amount because it is not possible for a firm to sell more than the cost of goods available for sale.
The cost of goods available for sale is obtained by adding beginning inventory and net purchases during an accounting period. This can be stated as follows:
COGAFS = BI + NP ............................... (1)
Where;
COGAFS = Cost of goods available for sale
BI = Beginning inventory
NP = Net purchases
At the end of an accounting period, ending inventory is deducted from the cost of goods available for sale to obtain cost of goods sold as follows:
COGS = COGAFS - EI ............................ (2)
Where;
COGS = Cost of goods sold
COGAFS = Cost of goods available for sale
EI = Ending inventory
Rearranging equation (2) and solve for COGAFS, we have:
COGFAS = COGS + EI ........................... (3)
Equation (3) therefore implies that the correct option is "cost of goods available for sale must be allocated at the end of the period between ending inventory and cost of goods sold".
The correct option is D.
Economic regulation refers to imposition of rules by a government, backed by the use of penalties that are specifically targeted at modifying the economic behavior of individuals or industries in the private sector. Regulation is often used to narrow down choices in the targeted area.
To find Simon's maximum amount he can borrow against his home you will use the Home Loan Value Formula.
Home is worth: $400,000
Remaining balance: $175,000
Borrow: up to 75% on home
First, you'll want to take the market value of $400,000 and multiply it by 75% (.75) which gives you $300,000.
Then, you'll need to subtract what Simon owes on the home to find the amount he can borrow.
$300,000 - $175,000 = $125,000
Simon can borrow $125,000 against his home.
Answer: Total earning is $96 for both Susan and Tom
Explanation:
Susan can pick 4 pounds of coffee or 2 pounds of nuts.
Tom can pick 2 pounds of coffee or 4 pounds of nuts.
Price of Coffee = $2 per pound
Price of Nuts = $2 per pound
Opportunity cost of producing coffee for Susan = 2/4 = 0.5
Opportunity cost of producing coffee for Tom = 4/2 = 2
Opportunity cost of coffee is low for Susan, so she has a comparative advantage in it.
So, Susan produces 6*4 = 24 pounds of coffee, total revenue from sale of coffee is $24*2 = $48
Opportunity cost of producing Nuts for Susan = 4/2 = 2
Opportunity cost of producing Nuts for Tom = 2/4 = 0.5
Opportunity cost of coffee is low for Tom, so he has a comparative advantage in it.
So, Tom produces 6*4 = 24 pounds of nuts, total revenue from sale of nuts is $24*2 = $48
So, 
Given Information:
Fair value of consideration paid = $15 million
Fair value of Midwest's assets=$11.9 million
Fair value of Midwest's liabilities=$1.7 million
Required Information:
Amount paid for goodwill = ?
Answer:
Amount paid for goodwill = 4.8 million
Explanation:
The amount of goodwill can be calculated by
Amount of goodwill = Fair value of consideration paid - Fair value of net identifiable assets
The Fair value of net identifiable assets is found by
Fair value of net identifiable assets = Fair value of Midwest's assets - Fair value of Midwest's liabilities
Fair value of net identifiable assets = 11.9 - 1.7
Fair value of net identifiable assets = 10.2 million
Therefore, the amount paid for goodwill is
Amount paid for Goodwill = 15 - 10.2
Amount paid for Goodwill = 4.8 million
