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2 years ago

When using the specific identification inventory method, cost of goods sold equals the ______.

1 answer:

4 0

With the <em>specific identification inventory method</em>, the Cost of Goods Sold equals the <em>exact costs of the items sold.</em>

The <em>specific identification inventory method</em> tracks each sold item to record its cost. The Cost of Goods Sold includes only the actual cost of the items sold and not an average or assumed cost.

The <em>specific identification inventory method</em> is not like the:

FIFO (First-in, First-out) method that assumes that items sold are from the first inventories in the store
LIFO (Last-in, First-out) method that assumes that items sold are from the last inventories in the store
Weighted-average method that takes the average cost for all the items in store to determine the cost of goods sold.

Thus, the <em>specific identification method</em> ensures that the Cost of Goods Sold equals the actual cost of the goods.

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It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. The current long-term debt

atroni [7]

Answer:

A) Total investment for Digby will be $2,518,806

D) Long term debt will increase from $33,862,062 to $34,888,934

Explanation:

The current Long-term debt is $33,862,062

Digby issues new shares of 50,000 with stock price $20.54.

50,000 shares * $20.45 = $1,027,000

Assets of Digby will rise by,

Assets / Equity = 2.45

Assets / $1,027,000 = 2.45

Assets = 2.45 * $1,027,000

Assets = $2,516,150

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2 years ago

Read 2 more answers

True or false: Researchers suggest that the one factor accounting for many of the failures of global teams is ineffective reward

Neporo4naja [7]

This is true. Researchers suggest that ineffective reward and recognition strategies are factors responsible for the failures.

<h3>What are global teams?</h3>

These are also referred to as the multinational teams. They are the specific type of team that is found in a workforce where the members may be people that are from different places.

By different places, we mean they are from different nations and their cultural backgrounds differ.

Read more on global teams here: brainly.com/question/5392895

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2 years ago

If the marginal propensity to consume in a municipality is 0.8, what is the value of the simple multiplier? If a new stadium tha

Pachacha [2.7K]

Answer:

(a) 5

(b) $150 million

Explanation:

(a) Multiplier = 1 ÷ (1 - MPC )

= 1 ÷ (1 - 0.8 )

= 1 ÷ 0.2

= 5 ⇒ the value of the simple multiplier is 5.

b) If the autonomous expenditure is increased by $30 million then the total output will increase by:

= $30 million × 5

= $150 million

c) If the Marginal propensity to import is 0.3 then the import will increase by:

= 150 × 0.3

= 45 million

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3 years ago

Bailand Company purchased a building for $148,000 that had an estimated residual value of $8,000 and an estimated service life o

baherus [9]

The journal entries relating to the building for the fifth year is: Debit Depreciation expense $10,500; Credit Accumulated depreciation $10,500.

<h3>Journal entries</h3>

1. Dec 31

Debit Depreciation expense $10,500

Credit Accumulated depreciation $10,500

(To record depreciation expense )

Book value=$148,000-($148,000-$8,000/10×4)]

Book value=$148,000-$56,000

Book value=$92,000

Depreciation=$92,000-$8,000/8

Depreciation=$10,500

2. Dec 31

Debit Depreciation expense $24,000

Credit Accumulated depreciation $24,000

[($92,000-$8,000)×6/21]

(To record depreciation expense)

3. Dec 31

Debit Accumulated depreciation $3,200.00

[($8,000×4)/10]

Credit Retained earnings $3,200.00

(To record prior year adjustment for depreciation expense)

Dec 31

Debit Depreciation expense $10,000.00

Credit Accumulated depreciation $10,000.00

[($148,000-$8,000)/10]

(To record depreciation expense)

Therefore the journal entries relating to the building for the fifth year is: Debit Depreciation expense $10,500; Credit Accumulated depreciation $10,500.

The complete question is:

Bailand Company purchased a building for $148,000 that had an estimated residual value of $8,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the following independent situations occur:

1. Bailand estimates that the asset has 8 years’ life remaining (for a total of 12 years).

2. Bailand changes to the sum-of-the-years’-digits method.

3. Bailand discovers that the estimated residual value has been ignored in the computation of depreciation expense.

Required: For each of the independent situations, prepare all the journal entries relating to the building for the fifth year. Ignore income taxes.

Learn more about Journal entries here:brainly.com/question/17201601

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2 years ago

Suppose that a bank has loaned money to two businesses: a trustworthy computer manufacturer and a risky mining venture. Unfortun

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Answer:

The situation is called insolvency. insolvency is refer to the situation when debtor is unable return its debt. The same is happened in the given situation. In the above case due to not paid by manufacturing unit, bank is unable to pay to depositor.

Insolvency is refer to that critical condition when debtor unable to pay amount to depositor. In the above given case even if bank want to sell its all assets it cannot cover its liabilities.Explanation:

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3 years ago