Gross Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2013. Its inventory at that date w
as $550,000 and the relevant price index was 100. Information regarding inventory for subsequent years is as follows:
Date - Inventory at Current Price - Current Prices Index
31-Dec-14 - $642,000 - 107
31-Dec-15 - 725,000 - 125
31-Dec-16 - 812,500 - 130
1. What is the cost of ending inventory December 31, 2017 under Dollar-value LIFO method?
2. What is the cost of ending inventory December 31, 2018 under Dollar-value LIFO method?
3. What is the cost of ending inventory December 31, 2019 under Dollar-value LIFO method?
Date - Inventory at Current Price - Current Prices Index
31-Dec-14 - $642,000 - 107
31-Dec-15 - 725,000 - 125
31-Dec-16 - 812,500 - 130
1. What is the cost of ending inventory December 31, 2017 under Dollar-value LIFO method?
2. What is the cost of ending inventory December 31, 2018 under Dollar-value LIFO method?
3. What is the cost of ending inventory December 31, 2019 under Dollar-value LIFO method?
1 answer:
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Answer: hi your question has some missing data attached below is the missing table
answer : $9
Explanation:
If Simone practices price discriminations across cities i.e. charging different prices across city instead of charging a single price
<u>To determine the additional profit we will apply the formula below</u>
Profit made from charging different prices - profit made from charging a single price
= ( ( $11 * 4) + ( $9 * 4 ) + ( $10 * 5) ) - ( $11 * 11 units )
= $130 - $121
= $9
Note : For a single pricing system Simone will sell only 11 units at a unit price of $11
while for different pricing system Simone will sell 4 units in city A at$11 , 4 units in City B at $9 , 5 units in city C at $10
