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Varvara68 [4.7K]
2 years ago
13

Iris Company has provided the following information regarding two of its items of inventory at year-end: There are 160 units of

Item A, having a cost of $18 per unit, a selling price of $22 and a cost to sell of $6 per unit. There are 110 units of Item B, having a cost of $48 per unit, a selling price of $54 and a cost to sell of $4 per unit. How much is the ending inventory using lower of cost or net realizable value
Business
1 answer:
maw [93]2 years ago
6 0

Answer:

$7,840

Explanation:

The inventory of Items A and B should be valued at the lower of cost and the net realizable value.

The cost is the invoice price at time of purchase ,while the net realizable value is the selling price less to sell

Products              Cost          Selling price cost to sell NRV    unit value

   A                         $18               $22                $6     $16             $16

   B                          $48              $54                $4    $50             $48

Item A is valued at $16 each i.e $16*160=$2,560

Item B is valued at $48 each i.e $48*110=$5,280

total value of inventory                             =$7,840

The ending inventory valued at the lower of cost or net realizable value is worth $7,840

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wolverine [178]

Answer:

Consider the following calculations

Explanation:

Expected pay off of investing 1000 in Rothko,LLC= probability of getting oil stock *increase in value ofstock= .37* 63% of 1000

= .37*630= 233.1

Similarly

Expected pay off of investing 1000 in Calder & co = .63* 37% of 1000= .63* 370= 233.1

Of investing 500 in each

Expected pay off= .37 * 63% of 500 + .63* 37% of 500

= .37* 315 + .63* 185= 233.1

7 0
2 years ago
Bond A pays $4,000 in 14 years. Bond B pays $4,000 in 28 years. (To keep things simple, assume these are zero-coupon bonds, whic
Arlecino [84]

Answer and Explanation:

Given that Bond A pays $4,000 in 14 years and Bond B pays $4,000 in 28 years, and that the interest rate is 5 percent, we see that Using the rule of 70, the value of Bond A is 70/5 = doubled after 14 years. Now if its value is 4000 in 14 years, its current value must be halved. Hence the value is 2000.

Sinilarly the value of Bond B is approximately one fourth now because it pays 4000 in 28 years. Hence its value is 4000/4 = 1000.

Now suppose the interest rate increases to 10 percent. Hence the doubling time is 70/10 = 7 years

Using the rule of 70, the value of Bond A is now approximately 1,000 and the value of Bond B is 250

Comparing each bond’s value at 5 percent versus 10 percent, Bond A’s value decreases by a smaller percentage than Bond B’s value.

The value of a bond falls when the interest rate increases, and bonds with a longer time to maturity are more sensitive to changes in the interest rate.

8 0
1 year ago
cite three real life situations where quadratic equations are illustrated. Formulate quadratic equations out of these situations
NISA [10]

Answer:

I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

Explanation:

To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.

x(x+9)=250\\x^{2} +9x=250\\x^{2} +9x-250=0\\

With this you just keep solving the others.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

2m as an area and the height is "x"

x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

57,600 is the area and width will be "x"

x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\

7 0
2 years ago
Shirts.com makes business dress shirts. The shirts could have defects in various ways including in the weave or color of the fab
fredd [130]

Answer: c.) Yes, the process is in control.

Explanation:

For the process to be in control, the number of defects have to be between the Upper Control Limit and the Lower Control limits of the c-chart which can be used to measure defects of irregularities per unit.;

UCL = C-bar + z*√(c-bar)

LCL = C-bar - z*√(c-bar)

C - Bar = \frac{Number of Dfects}{Number of shirts}

C - Bar = \frac{4+6+3+1+5+6+4+6}{8}

C - Bar = 4.375

z = 3 when using the 3 sigma control

UCL = C-bar + z*√(c-bar)

UCL = 4.375 + 3 * √(4.375)

UCL = 10.65

LCL = C-bar - z*√(c-bar)

LCL = 4.375 - 3 * √(4.375)

LCL = -1.9

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Defects are within the control limits. The process is in control.

6 0
2 years ago
On December 31, 2019, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. Wintergreen received $
Elina [12.6K]

Answer:

June 30, 2020   Bond Interest expense      Debit        $5,756.25

                                     Discount on Bonds payable    Credit      $506.25

                                     Cash                                          Credit      $5,250

Explanation:

We have to calculate the interest expense. The bond interest expense = Cash payment + bond amortization discount

Given,

Bond price = $150,000

Interest = 7%

Number of period, n = 10 years × 2 (As it is a semiannual bond) = 20

Cash payment for semiannual interest = $150,000 × 0.07 × (1÷2)

Cash payment for semiannual interest = $5,250 (Credit)

Amortized bond discount (discount on bonds payable) = $10,125 ÷ 20 (as it is a semiannual payment and $10,125 is for 10 years)

Discount on bonds payable = $506.25 (Credit)

Therefore, bond interest expense = $5,250 + $506.25 = $5,756.25 (Debit)

6 0
1 year ago
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