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Lina20 [59]
3 years ago
10

Buckeye Corporation adopted dollar-value LIFO on January 1, 2021, when the inventory value was $514,000 and the cost index was 1

.00. On December 31, 2021, the inventory value at year-end costs was $549,000 and the cost index was 1.04. Buckeye would report a LIFO inventory of:
Business
1 answer:
kupik [55]3 years ago
3 0

Answer:

$528,440

Explanation:

For computing the amount of inventory under LIFO method, first we have to determine the December 31 value based on the cost index which is shown below:

= Inventory value on January 1, 2021 × cost index

= $514,000 × $1.04

= $534,560

The difference would be

= $549,000 - $534,560

= $14,440

This amount reflect the increase in value

So, the inventory would be reported at

= Inventory value on January 1, 2021 + increase value

= $514,000 + $14,440

= $528,440

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Answer:

C. 11.05%

Explanation:

The computation of the cost of capital under the proposed leveraging is shown below;

cost of capital is

=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))

=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))

= 11.0500%

hence, the cost of capital is 11.05%

8 0
3 years ago
Shiffon Electric Group wants to enter the European market via a wholly owned subsidiary where there are already well-established
Aleonysh [2.5K]

The most suitable mode of entry for Shiffon Electric into the European market will be through <u>acquisition</u>.

<h3>What is an acquisition?</h3>

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Thus, this business arrangement will allow Shiffon Electric Group to enter into the market effectively and have market share despite number of well-established incumbent enterprises.

Read more about acquisition

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5 0
2 years ago
The Vitamin Shoppe sells natural vitamins and supplements. Product prices are adjusted frequently to meet the needs of individua
Anna11 [10]

Answer:

Dynamic Pricing

Explanation:

Dynamic pricing is the price set to reflect the changes in environment factors and factors that are included in the company's corporate policies. In the above scenario, the company has set a different price in different scenario. The normal customer who visits the store fewer times are not given any discounts however the permanent customer is given discount. This is because of the changes in customer loyalty factor. The company is charging different in different scenarios which means it is pursuing Dynamic Pricing strategy.

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3 years ago
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Career Clusters have the knowledge and skills that learners need as they follow a pathway toward their career goals.

6 0
3 years ago
he journal entry for adjustment of overallocated manufacturing overhead includes a​ ________. A. credit to Manufacturing Overhea
QveST [7]

Answer:

C. Credit to Cost Of Goods Sold

Explanation:

Over allocation refers to the scenario of assigning more than actual manufacturing overhead costs. This means profits would be understated in such a scenario and costs overstated.

The journal entry for adjustment of overallocated manufacturing overheads is:

Manufacturing Overheads A/C                           Dr.

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Cost of Goods Sold is an expense and expenses are debited. A credit to such an account reduces it's balance as in the case above.

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3 years ago
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