Brief Exercise 198 The Entertainment Center accumulates the following cost and net realizable value (NRV) data at December 31. Inventory Categories Cost Data Market Data
Camera $11,200 $10,000
Camcorders 7,700 8,800
DVDs 13,900 12,700
Compute the lower-of-cost-or-net realizable value for company's inventory.
Answers
Answer:
$30,400
Explanation:
The computation of the lower-of-cost-or-net realizable value is shown below:-
Inventory Cost Net realizable value Lower cost
Camera $11,200 $10,000 $10,000
Camcorders $7,700 $8,800 $7,700
DVDs $13,900 $12,700 $12,700
The Lower cost $30,400
Final answer:
To compute the lower-of-cost-or-net realizable value for the company's inventory, compare the cost of each inventory category to its net realizable value (NRV) and choose the lower value.
Explanation:
To compute the lower-of-cost-or-net realizable value for the company's inventory, you need to compare the cost of each inventory category to its net realizable value (NRV) and choose the lower value. In this case, the cost data and market data are given for each category.
- For the Camera inventory category, the cost is $11,200 and the NRV is $10,000. The lower value is $10,000.
- For the Camcorders inventory category, the cost is $7,700 and the NRV is $8,800. The lower value is $7,700.
- For the DVDs inventory category, the cost is $13,900 and the NRV is $12,700. The lower value is $12,700.
Therefore, the lower-of-cost-or-net realizable value for the company's inventory is $10,000 for the Camera category, $7,700 for the Camcorders category, and $12,700 for the DVDs category.
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Related Questions
For a manufacturing company that you are consulting for, managers are unsure about making inventory decisions associated with a key engine component. The annual demand is estimated to be 15,000 units and is assumed to be constant throughout the year. Each unit costs $80. The companys accounting department estimates that its opportunity cost for holding this item in stock for one year is 18% of the unit value. Each order placed with the supplier costs $220. The companys policy is to place a fixed order for Q units whenever the inventory reaches a predetermined reorder point that provides sufficient stock to meet demand until the suppliers order can be shipped and received. As a consultant, your task is to develop and implement a decision model to help them arrive at the best decision. As a guide, consider the following:1. Define the data, uncontrollable inputs, and decision variables that influence total inventory cost.2. Develop mathematical functions that compute the annual ordering cost and annual holding cost based on average inventory held throughout the year in order to arrive at a model for total cost.3. Implement your model on a spreadsheet.4. Use data tables to find an approximate order quantity that results in the smallest total cost.5. Use Solver to verify your result.6. Conduct what-if analyses to study the sensitivity of total cost to changes in the model parameters.7. Explain your results and analysis in a memo to the vice president of operations.
Williams Company computed its cost per equivalent unit for direct materials to be $1.90 and its cost per equivalent unit for conversion to be $3.85. A total of 245,000 units of product were completed and transferred out as finished goods during the month. The ending Work in Process inventory consists of 26,000 equivalent units of direct materials and 26,000 equivalent units of conversion costs. The amount that should be reported in ending Work in Process Inventory is:
The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2020. Before calculating and recording the month’s bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2020 net sales were $30,000,000. In the past several years, 1% of net sales have proven uncollectible. An aging of accounts receivable results in a $360,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020.PART A: PERCENT OF SALES METHODAssume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.What adjusting entry does Bach make to record May 2020 Bad Debt Expense?What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________PART B: ANALYSIS OF RECEIVABLES METHODAssume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.What adjusting entry does Bach make to record May 2020 Bad Debt Expense?What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________Problem 3 Use PVH Corp.’s financial statement information to answer the following questions.Provide the following account balances for PVH:February 2, 2020February 3, 2019Accounts Receivable (gross)Allowance for Doubtful AccountsAccounts Receivable, netWhich of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)? Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020? Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020? Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019. Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
The following information is from ABC Company's general ledger: Beginning and ending inventories, respectively, for raw materials were $16,000 and $20,000 and for work in process were $40,000 and $44,000. Raw material purchases and direct labor costs incurred were $72,000 each, and manufacturing overhead applied amounted to $40,000. Determine the total cost of goods manufactured during the period.
Answers
Answer:
$756,000
Explanation:
Allowance for Bad Debts opening ($24,000)
Allowance for Bad Debts Closing $780,000
(13,000,000)*6%
Allowance Bad Debt Expense for the year $756,000
Answers
Answer:
Instructions are below.
Explanation:
Giving the following information:
Direct material:
Standard= 7.40 pounds $ 2.60 per pound
Actual= 12,100 pounds of material were purchased for $2.50 per pound.
Direct labor:
Standard= 0.45 hours $ 8.00 per hour
Actual= 575 hours of direct labor time were recorded at a total labor cost of $5,750
Units produced= 1,500
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.6 - 2.5)*12,100
Direct material price variance= $1,210 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
standard quantity= 1,500*7.4= 11,100
Direct material quantity variance= (11,100 - 12,100)*2.6
Direct material quantity variance= $2,600 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Standard quantity= 1,500*0.45= 675
Direct labor time (efficiency) variance= (675 - 575)*8
Direct labor time (efficiency) variance= $800 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= 5,750/575= $10
Direct labor rate variance= (8 - 10)*575
Direct labor rate variance= $1,150 unfavorable
Answers
Answer: Please refer to Explanation
Explanation:
Foreign Direct Investment refers to the establishment of a company in a country by a foreign company or the acquisition of a company by a foreign company. The main thing to note is that the foreign company is involved DIRECTLY in the running of the newly established or acquired company.
Foreign Portfolio Investment however, is investing in another country by means of purchasing shares, bonds or other financial instruments from that country.
Therefore we can then classify the above accordingly,
Buying bonds issued by a foreign government. FOREIGN PORTFOLIO INVESTMENT.
Opening up a factory in a foreign country. FOREIGN DIRECT INVESTMENT.
An individual investor is more likely to engage in foreign direct investment than a corporation. FALSE.
Foreign Direct Investment would simply be too expensive for the average individual to engage in. It is way more likely to be a Corperation.
Answers
Answer:
The answer is "74,000".
Explanation:
Please find the complete question in the attached file.
Profitability analysis of the total business:
The combined value for final sales
Low cost of manufacturing end products:
Wool's cost
Process cost of segregation
Combined dyeing cost s
Gain benefit
Final answer:
To determine the overall profit in industries that process joint products, calculate the difference between the sales value of the final products and the costs of the raw materials inputs.
Explanation:
In industries that process joint products, the overall profit can be determined by calculating the difference between the sales value of the final products and the costs of the raw materials inputs. To find out the overall profit, follow these steps:
- Calculate the total sales value of the final products by summing up the sales values of all the final products.
- Calculate the total costs of the raw materials inputs by summing up the costs of all the raw materials.
- Subtract the total costs of raw materials inputs from the total sales value of the final products.
The resulting value will be the overall profit if all intermediate products are processed into final products.
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Answers
Answer:
Please see answers below
Explanation:
Joan may as well put a call through to Maria in addition to his previous mail. Several remedial options are available to Juan and each has its own merits and demerits. It is proper for the tenant to consider each options carefully and seek legal opinion where necessary. However, if Maria declines to do the repairs, Juan may seek the following remedies
• Repair and deduct remedy . In this type of remedy, a tenant may deduct money that is equivalent of a month's rent to cover the cost of the repair or defect. Rental unit 156 covers a condition whether faulty or substandard rented unit could affect the tenant's health and safety. Since the landlord has refused to do the repair, she is guilty of implied warranty of habitability which includes leak in the roof, gas leak, no running water etc. Also, the tenant may not have to file a lawsuit against the landlord since this type of remedy has legal aid. Other conditions attached in addition to the above are ; the repairs cannot cost more than a month's rent, the tenant cannot use the repair and deduct remedy more that twice in any 12 month period, tenant must have informed the landlord in writing and through calls of the faulty area that requires repair. His family or pets must not be the cause of the faulty area that needed to be repaired etc.
• The abandonment remedy . Here, the tenant could move out of the faulty unit or defective rental unit due to its substandard condition which could affect his health and safety. Where the tenant uses the abandonment remedy judiciously, he is not liable to pay any other rent once he has abandoned or moved out of the defective rental unit. The conditions attached are that; the defects must be serious and directly related to the tenant's health and safety, the tenant or his family must not be the cause of the faulty space that requires repair. Moreover, the tenant must have informed the landlord whether in writing or orally telephone calls of the defects that requires repair.
• The rent withholding remedy. Legally, a tenant could withhold house rent if the landlord fails to take care of serious defects that negates the implied warranty of habitability. Conditions attached to this type of remedy are; the defects to be repaired must have threatened the tenant's safety and wellbeing. Again, the faulty or defective unit must be such that it becomes uninhabitable for the tenant . The tenant, his family or pets must not be the cause of the defects that requires repairs. The tenant must have also notified the landlord either through phone calls on in writing, amongst others.
• The tenant could also file a lawsuit against the landlord to recover the cost expended to fixing the faulty repairs where the landlord was not willing to do so. Conditions that must be met before this option could stand in the court of law are; the rental unit has serious defect that is not safe for living. A housing inspector has inspected the house and found to be short of minimum requirements for habitable place etc. A tenant may seek this type of redress where the option for out of court settlement has failed with the landlord.
Answers
Available Options are:
A. Investors' allowable investment depends on the accredited or non-accredited status.
B. Investors may invest a combined $50 million within a 12-month period.
C. Investors may invest no more than $1 million combined for the first year of the business.
Answer:
Option C. Investors may invest no more than $1 million combined for the first year of the business.
Explanation:
The non-accredited investors do not invest more than $1 million for first year. Furthermore, for Investor it also imposes investment in current business conditions which says that Investor can invest in its business with greater of:
1. $2000
2. Or the lesser of (If the net worth of Wendy is less than $100,000)
- 5% of its total income for the year
- Net worth
There is also an option which is available if the net worth of Investor exceeds above $100,000 then he can invest up to lesser of 10% of his income or net worth, otherwise he will have to follow the above conditions.
Here, it also has an upper limit, which means that the investor can not invest more than $100,000 in the subsequent year, whatever the level of net worth or income he had for the year.
This means the non-accredited investor can not invest more than $1 million.
Final answer:
Unaccredited investors can invest in new businesses, but regulations apply. Primarily, the securities need to be either registered with the SEC or meet an exemption. Two such exemptions under Regulation D are Rule 504 and Rule 506, allowing fundraising from both accredited and non-accredited investors under certain circumstances.
Explanation:
Wendy is seeking an investment from unaccredited investors for her new business. This brings her into the area of private company financing where several regulations, primarily referred to as securities laws, apply.
These laws require that securities offered or sold to investors must be either registered with the Securities and Exchange Commission (SEC) or meet an exemption. Since most startups like Wendy's do not want to bear the burden of SEC reporting requirements, they rely on exemptions to raise capital. One such exemption is Regulation D, especially Rule 504 and Rule 506.
Rule 506 allows investments from an unlimited number of accredited investors and up to 35 unaccredited investors, provided they meet 'sophisticated investor' standards. Rule 504 allows raising up to $1 million in a 12-month period, from both accredited and non-accredited investors. Nonetheless, it does not preempt state blue sky laws, meaning Wendy may need to comply with individual state laws where her investors are based.