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mrs_skeptik [129]
2 years ago
9

Which of the following statements is not a characteristic of the LIFO method of pricing inventory? During a period of falling pr

ices, LIFO tends to maximize the amounts of income taxes owed The cost of goods sold is measured in relatively current costs Inventory is valued at relatively current costs During a period of rising prices, LIFO tends to minimize the amounts of income taxes owed
Business
1 answer:
Valentin [98]2 years ago
6 0

Answer:

Inventory is valued at relatively current costs

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold. Inventory would be made up of older purchases not valued at current costs

In periods of rising prices, LIFO  tends to minimise the amounts of income taxes owed because cost of goods would be higher due to inflation and this would reduce profit and hence taxes paid.

On the other hand, in periods of falling prices, LIFO tends to maximize the amounts of income taxes owed because cost of goods sold would be low and this would increase profit and hence taxes paid

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Couurtney bought a shirt for $24. with a coupon for 25% off. what was the original price of the shirt before the discount
kiruha [24]
Let the original price be x.

then,

x- 25% of x= 24
x- 25x/100 = 24
x-   x/4=24
3x/4=24

3x= 96

x= 32

in short...the original price= 32 dollars

3 0
3 years ago
A company using the perpetual inventory system purchased inventory worth $ 22 comma 000 on account with terms of 2​/10, ​n/30. D
EastWind [94]

Answer:

Discount = $420

Explanation:

Inventory purchased = $22000

Defective inventory = $ 1000

to find out

amount of the purchase discount that would be available to the company is​

solution

we know Inventory purchased = $22000

and return is $1000

so Net Purchases = $22000  - $1000

Net Purchases = $21000

so

discount claim for $21000  is 2%

Discount = 2% of $21000

Discount = $420

4 0
3 years ago
Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 uni
kykrilka [37]

Answer:

a. $283,140

Explanation:

equivalent units: complete untis + percentage of completion ending units

(notice there is no beginning inventory)

18,000 complete + 2,000 x 100% = 20,000 materials

18,000 complete + 2,000 x 30% = 18,600 conversion cost

equivalent cost: 100,000 / 20,000 = 5

conversion cost: (142,300 + 57,200) / 18,600 = 10,72580 = 10.73

total unit cost: 15.73

transferred-out units: 18,000 x 15.73 = 283.140‬

3 0
3 years ago
How might increasing the level of government transfers reduce the size of the economic pie? check all that apply?
maksim [4K]
Since the increasing level of government transfers only transfers the wealth without actual creation of goods/services, Higher taxes may be necessary to finance increased transfer payments, leading to a reduction in hours worked because of a decrease in the reward for productive activity. Not only that, <span>.Greater transfer activity diverts productive resources into rent-seeking activity</span>
8 0
3 years ago
Causwell company began 2018 with 10,000 units of inventory on hand. the cost of each unit was $5.00. during 2018 an additional 3
nydimaria [60]

The amount of cost of goods sold using FIFO method is $110,000.

Hope this helps. :)

3 0
3 years ago
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