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Karolina [17]
3 years ago
11

In 2019, Richard's Department Store changes its inventory method from FIFO to LIFO. Richard's uses the simplified LIFO method. R

ichard's year-end inventory under FIFO is as follows: 2018 - $300,000; 2019 - $350,000. The 2018 price index is 110% and the 2019 index is 120%. The 2019 layer is
A) $19,097.
B) $20,833.
C) $22,727.
D) $50,000.
Business
1 answer:
xeze [42]3 years ago
7 0

Answer:

C) $22,727.

Explanation:

to calculate the 2019 layer, I will first determine the value of the 2019 inventory using LIFO:

(2018 inventory / 2018 price index) + (2019 inventory - 2018 inventory) = ($300,000 / 1.1) + ($350,000 - $300,000) = $272,727 + $50,000 = $322,727

to determine the LIFO layer = adjusted 2019 inventory - 2018 inventory = $322,727 - $300,000 = $22,727

The LIFO layer represents the difference in cost of goods sold from the ending of one year to the next year.

You might be interested in
If a donut shop sells a dozen donuts for $6.00, what would the cost of 9 donuts be at the same rate?
larisa86 [58]
To solve this question, first we need to find out the price of a single donut.

12 donuts = $ 6.00
1 donuts = $6.00 / 12

1 donuts = $ 0.50

After that, we just need to multiply the price for a single donut with the required amount (9), which will be:

9 x $ 0.50 = $ 4.50 . . . . for 9 donuts



3 0
3 years ago
A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month.
Gennadij [26K]

Answer:

a. 1.51 containers

b. Fewer

Explanation:

The computations are shown below:

a. The number of containers would be

= Annual demand × time × (1 + inefficiency factor) ÷ holding pieces

= 70 × 0.75 × (1 + 0.15) ÷ 40

= 1.51 containers

The time is converted from minutes to hour i.e 45 minutes ÷ 60 minutes = 0.75

b. If the system improves, the fewer containers are required i.e 2 containers approximate because inefficiency factor got decreased

6 0
3 years ago
Bello, Inc., has a total debt ratio of .31.
lutik1710 [3]

Answer:

a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company.

b.Equity Multiplier or P/E ratio=Market value per share/Earning per share.

Explanation:

a. Debt Equity ratio is calculated by dividing long term Debt by total equity of the company. The Debt Equity ratio can be calculated using the Market value of debt or equity. It can also be calculated using the book values of debt or equity which are included in the balance sheet of the company.

b. Equity multiplier is also known as price /earning ratio. A price/earnings ratio or P/E ratio is the ratio of the market value of a share to the  annual earnings per share. For every company whose shares are traded on a  stock market, there is a P/E ratio. For private companies (companies whose shares are not traded on a stock market) a suitable P/E ratio can be selected and  used to derive a valuation for the shares.

Equity Multiplier or P/E ratio=Market value per share/Earning per share.

4 0
3 years ago
Jason purchased ABC stock at $40 per share and DEF stock at $35 per share on the same day in 2015. Exactly 6 months later, the A
Pachacha [2.7K]

Answer:

C) ABC 5% and DEF 5.7%

Explanation:

Data provided in the question:

Purchasing Cost of Stock ABC purchased = $40 per share

Purchasing Cost of Stock DEF purchased = $35 per share

Time = 6 months

Selling price of share of ABC = $42 per share

Selling price of DEF share = $36

Dividend paid to the DEF = $0.5 each quarter i.e $0.5 twice in 6 months

Thus,

Total dividend paid to DEF = $0.5 × 2

= $1

Now,

For ABC

Total return = Selling price - Purchasing Cost

= $42 - $40

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $40 ] × 100%

= 5%

For DEF

Total return = Selling price + Dividend received - Purchasing Cost

= $36 + $1 - $35

= $2 per share

thus,

Holding period return = [ Total return ÷ Purchasing cost ] × 100%

= [ $2 ÷ $35 ] × 100%

= 5.7%

Hence,

option C) ABC 5% and DEF 5.7%.

7 0
3 years ago
WILL GIVE BRAINLIEST
melomori [17]
I think it’s C, please forgive me if I’m wrong
8 0
2 years ago
Read 2 more answers
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