I am not quite sure what this question is asking, nor do I understand how to apply the lower-of-cost-or-NRV.
The controller of Alt Company is applying the lower-of-cost-or-net realizable value basis of valuing its ending inventory. The following information is available:
Cost Net Realizable
Value
Lawnmowers:
Self-propelled $14,800 $17,000
Push type 19,000 18,000
Total 33,800 35,000
Snowblowers:
Manual 29,800 31,000
Self-start 19,000 21,000
Total 48,800 52,000
Total inventory $82,600 $87,000
Compute the value of the ending inventory by applying the lower-of-cost-or-NRV. Show your work.
In: Accounting
Call Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $140.50 per unit.
|
Sales volume (units).............................................. |
6,000 |
7,000 |
|
|
Cost of sales.......................................................... |
$497,400 |
$580,300 |
|
|
Selling, general, and administrative costs............. |
$273,600 |
$294,700 |
1. The best estimate of the total monthly fixed cost is:
| $147,000 |
| $771,000 |
| $823,000 |
|
$875,000 2. The best estimate of the total variable cost per unit is:
|
In: Accounting
Exercise 15-3 Analysis of cost flows LO C2
As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.
| Job 102 | Job 103 | Job 104 | |||||||
| Direct materials | $ | 26,000 | $ | 68,000 | $ | 46,000 | |||
| Direct labor | 13,000 | 28,200 | 40,000 | ||||||
| Overhead applied | 5,330 | 11,562 | 16,400 | ||||||
Job 102 was started in production in May and the following costs
were assigned to it in May: direct materials, $9,000; direct labor,
$2,800; and overhead, $1,148. Jobs 103 and 104 were started in
June. Overhead cost is applied with a predetermined rate based on
direct labor cost. Jobs 102 and 103 were finished in June, and Job
104 is expected to be finished in July. No raw materials were used
indirectly in June. Using this information, answer the following
questions. (Assume this company’s predetermined overhead rate did
not change across these months.)
1&2. Complete the table below to calculate the
cost of the raw materials requisitioned and direct labor cost
incurred during June for each of the three jobs?
3. Using the accumulated costs of the jobs, what
predetermined overhead rate is used?
4. How much total cost is transferred to finished
goods during June?
REQ 1 and 2 Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs?
|
Direct materials |
| Job | May | June | Total |
| Job 102 | |||
| Job 103 | |||
| Job 104 | |||
| Total |
| Direct Labor |
| Job | May | June | Total |
| Job 102 | |||
| Job 103 | |||
| Job 104 | |||
| Total |
REQ 3 Using the accumulated costs of the jobs, what predetermined overhead rate is used?
|
Overhead rate
Numerator options- AR, Average raw materials inv, COGS, Estimated DL, Estimated overhead costs, Net sales, Raw materials used Denominator options- AR, Average raw materials inv, COGS, Estimated DL, Estimated overhead costs, Net sales, Raw materials used, |
REQ 4
How much total cost is transferred to finished goods during June?
| Job | Dm | DL | Applied OH | Total cost | Cost transferred to finished goods |
| 102 | $26,000 | $13,000 | |||
| 103 | 68,000 | 28,200 | |||
| 104 | 46,000 | 40,000 | |||
| Total | $140,000 | 81,200 |
In: Accounting
Zero growth: Ron Santana is interested in buying the stock of First National Bank. While the bank's management expects no growth in the near future, Ron is attracted by the dividend income. Last year the bank paid a dividend of $5.65. If Ron requires a return of 14 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank's stock?
In: Finance
Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?
Group of answer choices
an expectation by buyers that their incomes will increase in the very near future
a decrease in the price of tennis racquets
an increase in the price of tennis balls
a decrease in the number of people in the United States under age 70
In: Economics
In: Economics
Donald Trump promised a more aggressive fiscal policy with a large increase in spending and significant tax cuts leading to a much larger government (budget) deficit. The US economy was at near the full employment (the unemployment rate in the US was low below 5%), what do you expect will be the response of the US Central Bank in terms of changes to the cash rate? Explain.
In: Economics
Which of the following is NOT true of the HTH motif of DNA-binding proteins?
Helix 2 stabilizes the structural domain with Helix 3 through hydrophobic interactions.
Helix 3 situated near the N-terminal of the protein is the DNA recognition helix.
Helix 2 is the helix at the beginning of the HTH motif.
There are 2 successive alpha helices separated by a sharp beta-turn.
In: Biology
18. A “bill and hold” scheme is most likely to include:
A) Shipment of items to a customer beyond what the customer has ordered.
B) Recording as sales items those that the seller retains in inventory as of year-end.
C) Billing of items that are held by customers for future revenue production purposes.
D) Selling items at substantial discounts near year-end.
In: Accounting
A projectile is launched on a planet other than Earth at a velocity of 38.1 m/s 30.0o above the horizontal. The ground slopes down in the direction of travel, so the projectile impacts the ground 37.9 m below the level from which it was launched. If the horizontal distance it travels is 419 m, what is the magnitude of the acceleration of gravity near the surface of the alien planet?
In: Physics