Carla Vista Company sells product 2005WSC for $130 per unit. The cost of one unit of...
Carla Vista Company sells product 2005WSC for $130 per unit. The cost of one unit of 2005WSC is $127, and the replacement cost is $126. The estimated cost to dispose of a unit is $6, and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-market?
A) $72.
B) $124.
C) $126.
D) $127.
PLEASE EXPLAIN HOW YOU CAME TO THE CORRECT ANSWER
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Carla Vista Company sells product 2005WSC for $130 per unit. The
cost of one unit of...
Cullumber Company sells product 2005WSC for $100 per unit. The cost of one unit of 2005WSC...
Cullumber Company sells product 2005WSC for $100 per unit. The cost of one unit of 2005WSC is $97, and the replacement cost is $96. The estimated cost to dispose of a unit is $6 and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost or market? 396 $94. $54. $97.
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Herman Company has three products in its ending inventory. Specific per unit data at the end...
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Herman Company has three products in its ending inventory. Specific per unit data at the end...
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Herman Company has three products in its ending inventory. Specific per unit data at the end...
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The condensed income statement for the Carla Vista and Paul
partnership for 2020 is as follows.
Carla Vista and Paul Company
Income Statement
For the Year Ended December 31, 2020
Sales (270,000 units)
$1,350,000
Cost of goods sold
900,000
Gross profit
450,000
Operating expenses
Selling
$270,000
Administrative
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459,000
Net loss
$(9,000
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A cost behavior analysis indicates that 75% of the cost of goods
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Question 2 Carla Vista Company makes and sells artistic frames for pictures. The controller is responsible...
Question 2
Carla Vista Company makes and sells artistic frames for pictures.
The controller is responsible for preparing the master budget and
has accumulated the following information for 2020.
January
February
March
April
May
Estimated unit sales
10,500
11,200
8,200
8,800
9,000
Sales price per unit
$50.30
$47.00
$47.00
$47.00
$47.00
Direct labor hours per unit
2.2
2.2
1.6
1.6
1.6
Wage per direct labor hour
$8
$8
$8
$9
$9
Carla Vista has a labor contract that calls for...
Expand Your Critical Thinking 18-02 The condensed income statement for the Carla Vista and Paul partnership...
Expand Your Critical Thinking 18-02 The condensed income statement for the Carla Vista and Paul partnership for 2020 is as follows. Carla Vista and Paul Company Income Statement For the Year Ended December 31, 2020 Sales (270,000 units) $1,350,000 Cost of goods sold 900,000 Gross profit 450,000 Operating expenses Selling $270,000 Administrative 189,000 459,000 Net loss $(9,000 ) A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 42% of the selling expenses are variable,...
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Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling pric considered normal for each product Specific data for each product are as follows: Product A Product B Historical cost $80 $95 Replacement cost 31 Estimated cost of disposal Estimated selling price 150 Required: What is the correct inventory value for each product?...
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Cullumber Company sells product 2005WSC for $100 per unit. The cost of one unit of 2005WSC is $97, and the replacement cost is $96. The estimated cost to dispose of a unit is $6 and the normal profit is 40% of selling price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost or market? 396 $94. $54. $97.
Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Product 1 $37 35 Product 2 Product 3 Cost $107 102 $67 57 72 Replacement cost Selling price Selling costs Normal profit 57 137 30 8 22 47 29 t Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to...
Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Product Product Product $66 Cost Replacement cost Selling price Selling costs Normal profit $36 34 56 56 $106 101 136 41 46 65 15 zi Required: What unit values should Herman use for each of its products when applying the lower of cost or market (LCM) rule to ending inventory? Product Cost Replacement...
The condensed income statement for the Carla Vista and Paul
partnership for 2020 is as follows.
Carla Vista and Paul Company
Income Statement
For the Year Ended December 31, 2020
Sales (270,000 units)
$1,350,000
Cost of goods sold
900,000
Gross profit
450,000
Operating expenses
Selling
$270,000
Administrative
189,000
459,000
Net loss
$(9,000
)
A cost behavior analysis indicates that 75% of the cost of goods
sold are variable, 42% of the selling expenses are variable, and
40% of the administrative...
Question 2
Carla Vista Company makes and sells artistic frames for pictures.
The controller is responsible for preparing the master budget and
has accumulated the following information for 2020.
January
February
March
April
May
Estimated unit sales
10,500
11,200
8,200
8,800
9,000
Sales price per unit
$50.30
$47.00
$47.00
$47.00
$47.00
Direct labor hours per unit
2.2
2.2
1.6
1.6
1.6
Wage per direct labor hour
$8
$8
$8
$9
$9
Carla Vista has a labor contract that calls for...
Inventory Write-Down Stiles Corporation uses the FIFO cost flow assumption and is in the process of applying the LCNRV rule for each of two products in its ending inventory. A profit margin of 30% on the selling pric considered normal for each product Specific data for each product are as follows: Product A Product B Historical cost $80 $95 Replacement cost 31 Estimated cost of disposal Estimated selling price 150 Required: What is the correct inventory value for each product?...
Problem 3-38 (Part Level Submission) Carla Vista Company produces a molded briefcase that is distributed to luggage stores. The following operating data for the current year has been accumulated for planning purposes. Sales price Variable cost of goods sold Variable selling expenses Variable administrative expenses $41.00 13.00 11.60 4.00 Annual fixed expenses Overhead Selling expenses Administrative expenses $14,203,800 2,822,550 5,918,250 Carla Vista can produce 2,731,500 cases a year. The projected net income for the coming year is expected to be...
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