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Ede4ka [16]
3 years ago
12

ABC Company has elected to adopt the dollar-value LIFO inventory method when the inventory is valued at $125,000. The adoption t

akes place as of January 1, 20X1 when the entire inventory represents a single pool. ABC Company determined that the inventory at December 31, 20X1 was $144,375 at current year cost and $131,250 at base year cost using a relevant price index of 1.10. The inventory at December 31, 20X1 under dollar value LIFO is
Business
1 answer:
Brut [27]3 years ago
8 0

Answer:

Explanation:

K

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Suppose that you buy a TIPS (inflation-indexed) bond with a 1-year maturity and a coupon of 7% paid annually. Assume you buy the
Kryger [21]

Answer:

at maturity I will receive 1,155.6

the real return is 7%

the nominal will be 15.56%

Explanation:

As it is indexed it will paid a real rate of 7% adjusted for 8% inflation

1,000(1+r)(1+\delta)=Amount

1,000 x 1.07 x 1.08 = 1,155.6 received at maturity

no know the nominal rate we do:

\frac{Amount}{Principal}-1

\frac{1,155.6}{1,000}-1

nominal = 0.1556 = 15.56%

7 0
3 years ago
The change in inventory value was created purely by accounting and exchange rate factors, because the subsidiary still has the s
Alik [6]

Answer:

It would decrease by $7,504.

Explanation:

The current ratio determines liquidity of a company. The current ratio is calculated by dividing total current assets from total current liabilities. The change in inventory will affect the current ratio of the company. In the consolidated financial statements the value of inventory is decreased due to exchange rate fluctuations. The change in value of inventory will affect the amount reported in the balance sheet of the parent and will ultimately result in reduction of current ratio.

3 0
3 years ago
Ardel Co. budgeted to sell 218,000 units of Zbox in September. Production of one unit of Zbox requires two pounds of aluminum an
FromTheMoon [43]

Answer:

207,000

Explanation:

Data provided

Sold units = 218,000

Ending inventory = 13,000

Opening units = 24,000

The computation of units during September is shown below:-

Number of units manufactured during the year = Sold units + Ending inventory - Opening units

= 218,000 + 13,000 - 24,000

= 231,000 - 24,000

= 207,000

Therefore for computing the number of units manufactured during the year we simply applied the above formula.

6 0
4 years ago
Ben gordon, inc. manufactures 2 products, wheels and seats. the company has estimated its overhead in the assembling department
zhannawk [14.2K]
The number of parts used for the wheels is,
                                (300,000 wheels) x (2 parts/wheel) = 600,000
For the seats,
                             (600,000 seats) x (3 parts/seat) = 1,800,00
From the calculation above, the ratio of wheels to total number of parts is 0.25 which means that the overhead allocated for the wheels should be equal to $165,000. The rest of the money should be for Sam, totaling to $495,000. 
7 0
3 years ago
Find the amount to which $550 will grow under each of the following conditions. Do not round intermediate calculations. Round yo
Cloud [144]

Answer:

(A)Fv= $864.2

(B) Fv= $1302.05

(C) Fv=  $2003.4

(D) Fv= $96817.21

Explanation:

Giving the following information:

Initial investment= $550

We will use the final value formula:

FV=Present value*(1+i)^n

(A) 9% compounded annually for 5 years.

Fv= 550*(1.09)^5=$864.2

(B) 9% compounded semiannually for 5 years.

Fv= 550*(1.09)^10= $1302.05

(C) 9% compounded quarterly for 5 years.

Fv= 550*(1.09)^15= $2003.4

(D) 9% compounded monthly for 5 years.

Fv= 550*(1.09)^60=$96817.21

6 0
3 years ago
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