answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nikolay [14]
2 years ago
10

Suppose management estimated the market valuation of some obsolete inventory at $99,000; this inventory was recorded at $120,000

, which resulted in recognizing a loss of $21,000. The auditors obtained the following information: The inventory in question could be sold for an amount between $78,000 and $92,000. The costs of advertising and shipping could range from $5,000 to $7,000.
Required:
a. Would you propose an audit adjustment to the management estimate?
b. Prepare the appropriate accounting entry.
Business
1 answer:
Annette [7]2 years ago
4 0

Answer:

a. An audit adjustment is needed since the best case scenario, where the net realizable value is highest would result in $92,000 - $5,000 = $87,000.

b. the value of inventory must decerase by $99,000 - $87,000 = $12,000, so COGS must increase by that amount:

Dr Cost of goods sold 12,000

    Cr Merchandise inventory 12,000

You might be interested in
Use the information below for Jensen Company to answer the question that follow. Direct materials used $345,000 Direct labor inc
AnnZ [28]

Answer:

b.$995,000

Explanation:

Jensen Company

Direct materials used $345,000

Direct labor incurred 250,000

Factory overhead incurred 400,000

Product cost $995,000

Therefore Jensen Company's product costs is $995,000

Direct materials used $345,000 + Direct labor incurred 250,000 +Factory overhead incurred 400,000 =$995,000

8 0
2 years ago
Read 2 more answers
Sophia mentions that $250 is not even 1% of her salary and she does not seem motivated by the amount of the bonus. Based on expe
Marizza181 [45]

Answer:

valence                              

Explanation:

Valence, as per the subject of psychology, implies the inherent attraction or adverseness of an event, object or scenario, particularly regarding emotions. The word also characterises different feelings and classifies them. For instance, feelings generally referred to as "evil" have harmful valence, such as fear and anger.  

Valence can be given a number and regarded as if it had been weighed, but it is unclear how accurate a statistic is based on a subjective study. Measurement based on visual emotion findings, using the Facial Activity Coding System and micro-expressions or muscle activity identified by facial electromyography, or current functioning brain scanning will resolve the opposition.

4 0
2 years ago
Ikea offers young customers a selection of home furnishings featuring good design, function, and acceptable quality at low price
Sladkaya [172]

Answer:

focused cost leadership                                            

Explanation:

A focused plan for cost management needs price-based rivalry to same a limited sector. A business that implements this approach will not automatically offer the industry's cheapest prices. Rather it pays low prices in competition with other firms that operate within the intended audience.

An crucial point in these techniques is that the essence of the small target audience differs throughout firms using a focused approach of cost management.

In some instances, demographics define the target group. Thus, from the above we can conclude that the correct option is B.

3 0
2 years ago
A fast-growing computer service company is hiring a Computer Network Architect, a Computer Programmer, a Web Administrator, and
viktelen [127]
IT (Information Technology).
6 0
2 years ago
Read 2 more answers
Imagine that you are an executive at a large bank. You have been tasked with overseeing your company's implementation of an enti
Afina-wow [57]

Answer:

My straight answer is you need a Diverse team with somewhat a high level of management with Gain Sharing Program as the incentive programme.

Explanation:

Since the question is long, I'll make it shorter. The team is New, the goal is wide, the team's autonomy (working independence) is not much strong.

A Diverse team is required as the set of tasks needed to be done requires different skill sets. (like law, tax, etc.)

Although the team is highly talented, they are new and not much experienced. So, a high level of management is required at the beginning until the team stabilizes.

Since its a new and diverse team, team spirit has to be established. An unfitting rewarding system could be the very beginning of various conflicts, trust issues and jealousy among peers in the group. Eventually destroying the team altogether.

Gain Sharing program mainly focus on improving the team productivity through participation, involvement and creative innovation. Eventually the entire team's productivity goes up and then the entire team is rewarded.

5 0
2 years ago
Other questions:
  • If cost of goods manufactured is $306,790, beginning work in process inventory, $25,000, and cost to manufacture, $300,000, the
    13·1 answer
  • Under the accrual basis of accounting: a. cash must be received before revenue is recognized. b. a company’s accounts must be ad
    7·1 answer
  • In May and June, Tammy spent all her clothing budget on bathing suits and beach bags. Each bathing suit cost $75. At Tammy’s opt
    11·1 answer
  • 1. "The biggest thing when we talk about personal branding is that it’s a _________" a. Hard thing b. Waiting game c. Process d.
    14·1 answer
  • Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The jou
    7·1 answer
  • A college raises its annual tuition by​ 25%, and its student enrollment falls by​ 3.5%. Compute the price elasticity of demand.
    10·1 answer
  • Countercyclical monetary policy means that _________________. Select the correct answer below: the Fed lowers interest rates dur
    12·1 answer
  • You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors an
    9·1 answer
  • At January 1, 2019, Vaughn Manufacturing has beginning inventory of 2000 surfboards. Vaughn estimates it will sell 7000 units du
    5·1 answer
  • Which of the following is NOT an individual characteristic influencing consumer behavior? A) culture. B) attitudes. C) task defi
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!