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olya-2409 [2.1K]
3 years ago
15

On January 1, Greenview Company adopted the dollar-value LIFO method. The inventory cost on January 1 was $112,000. On December

31, ending inventory had a cost of $136,400. The cost index for the year was 1.10. For what amount would ending inventory be reported?
Business
1 answer:
Mumz [18]3 years ago
7 0

Answer:

125,200

Explanation:

Adjust inventory to base year prices:

= Cost of ending inventory ÷ cost index for the year

= $136400 ÷ 1.1

= $124,000

Current year LIFO layer:

= Adjust inventory to base year prices - Cost of beginning inventory

= $124,000 - $112,000

= $12,000

Inventory to be shown:

= Add the new LIFO layer at end of period prices to prior year LIFO inventory

= (112,000 × 1) + (12,000 × 1.1)

= 112,000 + 13,200

= 125,200

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b. $6,000

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Explanation:

a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.

If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.

That amount would be,

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b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.

The amount saved therefore is,

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As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.

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All of the following are alternative forms of institutional advertisements EXCEPT:
forsale [732]

Answer: B. Public Service

Explanation:

There are 4 alternative forms of institutional advertisements being;

  1. Competitive - These types of adverts aim to show that the product presented is better than that of the competitor by showcasing its benefits and features.
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These are the four alternative forms of institutional advertisements and Public Service is not one of them.

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