1answer.
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
prohojiy [21]
3 years ago
15

RF Company had January 1 inventory of $150,000 when it adopted dollar-value LIFO. During the year, purchases were $900,000 and s

ales were $1,500,000. December 31 inventory at year-end prices was $215,040, and the price index was 112. What is RF Company's gross profit?
A. $642,000
B. $647,040
C. $1,302,960
D. $665,190
Business
1 answer:
lorasvet [3.4K]3 years ago
8 0

Answer:

Gross profit = $647,040

so correct option is B. $647,040

Explanation:

given data

inventory = $150,000

purchases = $900,000

sales = $1,500,000

inventory end prices = $215,040

price index = 112

to find out

RF Company's gross profit

solution

at 31st December  base year inventory prices will be  

base year inventory prices = \frac{215040}{1.12}

base year inventory prices = $192,000

and

now Changes in inventory from beginning will be here as

Changes in inventory from beginning = $192000- $150000

Changes in inventory from beginning = $42,000

so as that 31st December as LIFO

inventory at dollar value is  = $150000 × 100% + $42000 × 112%

inventory at dollar value  = $150000 + 47040

inventory at dollar value  = $197,040

so

Cost of goods sold will be here as

Cost of goods sold = beginning inventory + purchases - ending inventory    .........................1

put here value

Cost of goods sold = $150,000 + $900,000 - $197,040

Cost of goods sold =  $852,960

so Gross profit  will be here

Gross profit = sales - cost of goods sold .........................2

put here value

Gross profit = $1500000 - $852960

Gross profit = $647,040

so correct option is B. $647,040

You might be interested in
Some clouds do not rain and others do because the clouds that do not rain do not have enough water in them
Alekssandra [29.7K]
That’s wise i like it
6 0
2 years ago
What is the equation for Student Loan Payments? ( Economics and Finances)
Rufina [12.5K]

Answer:

p= r(PV)

    ---------

    1-(1+)^-n

p=Payment

PV= Present Value

r=rate per period

n=number of periods

Explanation:

sorry if it is wrong

6 0
2 years ago
Pete Morton is planning to go to graduate school in a program of study that will take three years. Pete wants to have $8,000 ava
pochemuha

Answer: $22,200.72

Explanation:

Given the following :

Amount Pete Morton wants to be able to withdraw each period = $8000

Number of periods = 3

Interest rate on deposit = 4%

The amount Pete must deposit at the beginning of his study to be eligible is the product of the payment per period and the present value of annuity factor.

From the present value of annuity factor table ; the factor obtained for a 3 years period at 4 % Interest rate is 2.77509

Hence,

$8000 × 2.77509 = $22,200.72

4 0
2 years ago
Which of the following is not one of the steps for recognizing revenue? Identify the performance obligations of the contract. Id
9966 [12]

Answer:

The answer is letter "D": Estimate the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods.

Explanation:

There are five steps for revenue recognition established by the Financial Accounting Standards Board (<em>FASB</em>) which are: <em>Identifying the contract with a customer; Identifying the performance obligations in the contract; Determining the transaction price; Allocating the prices to the performance obligations </em>and<em>; Recognizing revenue.</em>

In that sense, estimating the total transaction price of the contract based on the sum of the stand-alone selling prices of the goods has nothing to do with it.

4 0
2 years ago
If you know the company that you want to work for, you should check the on the company’s website as you perform your job search
ExtremeBDS [4]

Answer: Investigating the website of a company allows me to have a general idea about what this consists of.

Explanation: In the job search process one of the ways to learn more about the company of interest is to investigate on its website. The website of a company offers general information about the company such as mission, vision, values, the services or products they offer, the work team that makes up the company, and that they look for when recruiting a person.

4 0
2 years ago
Other questions:
  • Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 worker
    6·1 answer
  • Journalize the following transactions for Armour Inc. using both the periodic inventory system and the perpetual inventory syste
    15·1 answer
  • The following transactions occur for the Hamilton Manufacturers.
    11·1 answer
  • What should you do if you think that a bill is wrong or want more information about it?
    7·1 answer
  • Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issu
    14·1 answer
  • Why must banks keep money on reserve?
    5·1 answer
  • In terms of interests in real property, this is not an interest in land but a temporary right to use another's land for a limite
    10·1 answer
  • Listed below are some provisions that are often contained in bond indentures. Which of these provisions, viewed alone, would ten
    8·1 answer
  • Heather normally uses a popular brand of cosmetics, but recently started having problems anytime she wears the makeup. At the dr
    5·2 answers
  • Daybook Inc. budgeted production of 403,500 personal journals in 20Y6. Paper is required to produce a journal. Assume six square
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!