Answer:
a. 15,650
Explanation:
Department E
FIFO Equivalent Units
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
Units Complete 15000 100 100 15000 15000
Add Ending Inv 3000 100 70 3000 2250
less
<u>Beginning Inv. 4000 100 40 4000 1600</u>
<u>Equivalent Units 14000 15650</u>
<u />
<em>The equivalent units for materials using FIFO are 14000 and for conversion are 15650.</em>
<em></em>
<em>In FIFO we add the completed units with the % of complete units in the ending inventory and subtract the beginning Work in Process Opening Inventory % complete units. </em>
<em>We need to calculate the units first transferred out.</em>
<span>She is at the problem recognition stage. In this stage, the buyer recognizes that there is a deficit between what they have and what they are looking to purchase. The state they are in is less than (or substandard to) the state or item they desire to have.</span>
Answer:
1.Cost of Goods Sold Increase by $70,000
2.Gross Profit and Net Profit decrease by $70,000
3.Inventory in balance sheet decrease by $70,000
Explanation:
IAS 2 requires inventory to be measured at the lower of cost or net realizable value.
In our case the inventory will be valued at net realizable value of $230,000 because this is lower.
The effect with this is :
1.Cost of Goods Sold Increase by $70,000
2.Gross Profit and Net Profit decrease by $70,000
3.Inventory in balance sheet decrease by $70,000
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