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navik [9.2K]
3 years ago
10

Judd Company has a beginning inventory in year one of $1,400,000 and an ending inventory of $1,694,000. The price level has incr

eased from 100 at the beginning of the year to 110 at the end of year one. Calculate the ending inventory under the dollar-value LIFO method.
Business
1 answer:
kotykmax [81]3 years ago
5 0

Answer:

The ending inventory under the dollar-value LIFO method is $1,554,000.

Explanation:

The dollar-value LIFO method can be described as a variation on the last in, first out (LIFO) method which focuses on the estimation of a conversion price index that can be employed to compare the year-end inventory to the base year cost.

The ending inventory under the dollar-value LIFO method can be calculated as follows:

Beginning inventory at begining price level = $1,400,000

Ending inventory at ending price level = $1,694,000

Beginning price level = 100

Ending price level = 110

Beginning price index = Beginning price level / Beginning price level = 100 / 100 = 1.0

Ending price index = Ending price level / Beginning price level = 110 / 100 = 1.1

Ending inventory at base year prices = Ending inventory at ending price level / Ending price index = $1,694,000 / 1.1 = $1,540,000

Real-dollar quantity increase in inventory = Ending inventory at base year prices - Beginning inventory = $1,540,000 - $1,400,000 = $140,000

Value of real dollar quantity increase in inventory = Real dollar quantity increase in inventory * Ending price index = $140,000 * 1.1 = $154,000

Dollar value LIFO Ending inventory = Beginning inventory at begining price level + Value of real dollar quantity increase in inventory = $1,400,000 + $154,000 = $1,554,000

Therefore, the ending inventory under the dollar-value LIFO method is $1,554,000.

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bixtya [17]

Answer:

the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.

Explanation:

"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.

<u>The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run</u>

<u>However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings. </u>

<u />

5 0
2 years ago
"We chose this plan because it would benefit the majority of you, and harm the fewest" would be an example of using this perspec
Alborosie

Answer:

utilitarian perspective      

Explanation:

In simple words, utilitarian approach refers to a method for making decisions in case of ethical dilemmas. Under this approach, the decision making authority makes judgement by focusing on the greater good, that is, making judgement that benefits the most of the individuals and harm the least.

This theory states that every party's interest should be taken into consideration equally as every related individual to the judgement is capable of suffering . However this approach is used when it is not possible to benefit all the stakeholders equally.

6 0
3 years ago
Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation
skelet666 [1.2K]

Answer:

1. The stand-alone price for installation service using adjusted market assessment is $180

2. The stand-alone price for installation service using expected cost plus margin is $182

3. The stand-alone price for installation service using residual is $182

Explanation:

1. According to the given data the market price at which similar vendors charge installation service should be taken as the stand-alone price which is $180

Therefore, The stand-alone price for installation service using adjusted market assessment is $180

2. The stand-alone price of the installation service using expected cost plus margin would be a follows:

Stan−alone price=Estimated Cost+Estimated margin

=$130+(40%×$130)

=$182

Therefore, The stand-alone price for installation service using expected cost plus margin is $182

3. The stand-alone price of the installation service using residual would be a follows:

Stand−alone price=Total transaction price−Stand−alone price for T.V−

−Stand−alone price for compensation and other costs

=$2,020−$1,810−$130

=$80

Therefore, The stand-alone price for installation service using residual is $182

8 0
3 years ago
Ann Company borrowed $240,000 to buy an equipment on January 1, 2019, and signed a 7% instalment note requiring annual equal pay
gogolik [260]

Answer:

$2,000

Explanation:

Payment include repayment of Capital Amount and Payment of Interest expense

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7 0
2 years ago
Date: May 10
GuDViN [60]

(1) c. Offers a negative-sounding apology

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Explanation:

At the closing part of the letter, a negative sounding apology can demoralize the employees.

Hubert should have offered a well-informed explanation without sounding negative.

The letter can be re-written as follows:

Date: May 10

To: All Employees

From: Anne Leller Manager, Classic Car Restoration Inc.

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We need to make sure to use all original engine parts and add a top-of-the-line clear coat on all three cars.

Additionally, the client purchased the original radios for each car, so we should install those too.

I apologize for any inconvenience, unfortunately, I am unwilling to make exceptions to this request at this point of time. However, you will surely receive an additional bonus for working overtime along with your salary.

7 0
3 years ago
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