Percent sales commission

Assignment Help Financial Accounting
Reference no: EM132204055

The cost to sell for each product consists of a 20 percent sales commission. The normal profit percentage for each product is 30 percent of the selling price.

Required:

1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.

2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory.

2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry.

Reference no: EM132204055

Questions Cloud

Preemptive right advantages and disadvantages : What is preemptive right advantages and disadvantages?
Complete the journal entry for the sale and the inventory : Byers was paid $100,000 cash to service the pencils. Complete the journal entry for the sale and the inventory.
What rate of interest will sarah be earning on her investmen : What rate of interest will Sarah be earning on her investment?
What is the largest reconciling item between : What is the largest reconciling item between net income and net operating cash flows during the most recent year (Indicate reconciling item and amount)
Percent sales commission : The cost to sell for each product consists of a 20 percent sales commission. The normal profit percentage for each product is 30 percent of the selling price.
Completing a project valuation using dcf : When completing a project valuation using DCF; How to I incorporate working capital and capex in terminal year
Balance sheet reported total assets : A company's January 1, 2017 balance sheet reported total assets of $150,000 and total liabilities of $60,000. During January 2017, the company completed
What is the amount of impairment loss : What is the amount of impairment loss recorded by Mickey Mouse Corp during 2017?
Multiplied by discount factor or divided : In calculation of DCF, is a negative cash flow still multiplied by discount factor or divided?

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Determine whether or not an accounting principle is accepted

The president wants to know how you determine whether or not an accounting principle is generally accepted. Discuss the sources of evidence for determining whether an accounting principle has substantial authoritative support.

  What is the cross-rate of swiss francs to euros

What is the cross rate between the Japanese yen and the Canadian dollar? That is, solve for ¥ per C$ - What is the cross-rate of Swiss francs to euros

  What are the four common divestiture techniques

What are the tax benefits and costs of a transaction that changes the depreciable basis of an asset? What are the 5 basic acquisition methods used to acquire freestanding companies? What are the 4 common divestiture techniques? what is a step-up in t..

  Task 11 wal-mart has had various stock splits its stock

task 11. wal-mart has had various stock splits. its stock price is hovering around 50 per share. berkshire hathaway led

  The world of business has changed radically over the last

the world of business has changed radically over the last twenty years.nbsp where once it was unique to operate

  Bond pays semi-annual interest

On January 1, 2016 Nezcorp issues a 1-year 10% $100,000,000 bond in a 7% market. bond pays semi-annual interest. What if the bond was issued on February 1 rather than on January 1 (round all numbers to nearest dollar)?

  Illustrate what amount of income or loss from the boutique

Richard operates a hair styling boutique out of his home. 300 of the 1,200 square feet of floor space are allocated to the boutique. Other information. Illustrate w hat amount of income or loss from the boutique should Richard show on his return

  Find the number of full payments required

A couple wants to accumulate $10,000 by making payments of $800, Find the number of full payments required and the size of the concluding payment

  Illustrate what is the minimum ownership percentage an owner

Illustrate what is the minimum ownership percentage an owner must have in the entity to avoid gain recognition when property is contributed?

  Preparation of journal entries for payroll accounting

Preparation of Journal entries for payroll accounting - Make the journal entry to record the February payroll, Record the journal entry for the employer's payroll taxes and Make the journal entry to record the employer's monthly payment of payroll ta..

  How much overhead may be allocated each time

How much overhead may be allocated each time a copy is made if cost allocations are computed to 4 significant digits?

  Management is considering preparing segmented information

Suppose that management is considering preparing segmented information but is unsure on how to identify a segment and is unsure on why the information is important. Outline a brief memo to management explaining the importance of segmented information..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd