Which inventory method results in the highest net income during periods of falling prices?

When managers are engaged in problem solving, there are several steps they should go through in order to prevent themselves from

andrew-mc [135]

Answer:

a. Defining the problem, generating alternatives, selecting an alternative, implementing and evaluating the solution.

Explanation:

In order to solve a problem managers should follow logical steps to solve it correctly. First, the problem needs to be defined and all the possible ways in which the problem could be resolved should be listed. Then, the solutions should be analyzed to determine which one is the best one for the specific case. After that, it should be implemented properly and the last step will be to evaluate the solution to get feedback and determine if it fixed the problem or if another solution will need to be found to deal with it.

4 0

3 years ago

Molly liquidates her catering business. She is left with $20,000 after selling all the assets and settling the liabilities. In t

Firdavs [7]

Answer:

In this case, the amount of $20,000 represents the owner's equity.

Explanation:

Assets:

Assets are the items that are own by a business. Examples of assets are inventory, machinery, company owned vehicles etc.

Liabilities:

Liabilities are the items a business owes to others. Examples of liabilities are bank dept, taxes, mortgage debt etc.

Equity:

Owner's equity is also known as net assets refer to the owner share of assets when the liabilities are paid off.

The relation between Assets, liabilities and owner equity are represented in a equation as:

Assets = Liabilities + Owner Equity

8 0

3 years ago

Cost Flow Methods The following three identical units of Item LO3V are purchased during April: Item Beta Units Cost April 2 Purc

Lelechka [254]

Answer:

a. Gross Profit =$89, Ending Inventory = $640

b. Gross Profit =$83, Ending Inventory = $631

c. Gross Profit =$86, Ending Inventory = $634

Explanation:

FIFO

a.Gross Profit

Sales ( 1 unit × $403) $403

Less Cost of Sales ( 1 unit × $314) ($314)

Gross Profit $89

b. Ending Inventory

Ending Inventory = Units Left × Earliest Price

= 2 units × $320

= $640

LIFO

a.Gross Profit

Sales ( 1 unit × $403) $403

Less Cost of Sales ( 1 unit × $320) ($320)

Gross Profit $83

b. Ending Inventory

Ending Inventory : 1 unit × $314 = $314

1 unit × $317 = $317

Total = $631

Weighted Average Cost method

a.Gross Profit

Sales ( 1 unit × $403) $403

Less Cost of Sales ( 1 unit × $317) ($317)

Gross Profit $86

b. Ending Inventory

Ending Inventory = Units Left × Average Price

= 2 units × $317

= $634

4 0

3 years ago

Merchant Company had the following foreign currency transactions: On November 1, 20X6, Merchant sold goods to a company located

vazorg [7]

Answer

The answer and procedures of the exercise are attached in the images below.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a 2 sheets with the formulas indications.

6 0

3 years ago

Anna is a forensic scientist who still uses the methods used by Dr. Leone Lattes. How is this MOST likely demonstrated in Anna’s

Nikolay [14]

A is the answer took the test

4 0

3 years ago