1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xz_007 [3.2K]
3 years ago
9

Bonita Industries began using dollar-value LIFO for costing its inventory two years ago. The ending inventory for the past two y

ears in end-of-year dollars was $286000 and $465000 and the year-end price indices were 1.0 and 1.2, respectively. Assuming the current inventory at end of year prices equals $650000 and the index for the current year is 1.25, what is the ending inventory using dollar-value LIFO
Business
1 answer:
Vitek1552 [10]3 years ago
3 0

Answer:

Bonita Industries

The ending inventory using the dollar-value LIFO is:

$520,000

Explanation:

a) Data and Calculations:

                                           Year 1          Year 2       Current Year

Ending inventory            $286,000    $465,000    $650,000

Year-end price indices        1.0               1.2               1.25

Ending inventory

using dollar-value LIFO $286,000   $387,500     $520,000

b) The ending inventory is usually indexed using the base year price index.  This gives an ending inventory value that is consistent with the base year.  For example, since the current year's inventory equals $650,000, with a current year index of 1.25, the ending inventory is evaluated based on year 1's price index of 1.0.  The computation divides the current inventory value by the current price index ($650,000/1.25), giving $520,000 as the current year's ending inventory value.

You might be interested in
Karen and Jay need a larger home. They have two large dogs and a baby on the way. One day in the real estate section, they see t
juin [17]

Answer: BRIDGE LOAN

Explanation: As the name says the bridge loan are the type of loans that bridge the difference between the new home of the buyer and the new mortgage in case the buyers existing home hasn't been sold yet. It is a type of short term loan, the usual time period for such kinds of loan is 2 weeks to 3 years.

In this case Karen and Jay have purchased the new house but sale of their old house is still pending thus from the above explanation we can conclude that bridge loan would be appropriate for them.

6 0
3 years ago
Candlewood LLC started business on September 1, and it adopted a calendar tax year. During the year, Candlewood incurred $6,500
SpyIntel [72]

Answer:

deduction for organizational expenses = $5,000

Explanation:

Since the total startup costs are over $50,000 then the company's deduction will be lower. Generally speaking, a company can deduct up to $5,000 in organizational an startup costs ($5,000 each). But if the costs are over $50,000, then your deduction will be reduced by $1 for each dollar over that threshold.

In this case, organizational costs were $9,500, so they can deduct $5,000 during the first year and $4,500 will be amortized over the next 15 years. Startup costs are $54,500, which means that they can only deduct $5,000 - ($54,500 - $50,000) = $500 during the first year. The remaining $54,000 must be amortized over a 15 year period. Total deduction during the first year = $5,000 + $500 = $5,500

8 0
3 years ago
Shiffon Electric Group wants to enter the European market via a wholly owned subsidiary where there are already well-established
Aleonysh [2.5K]

The most suitable mode of entry for Shiffon Electric into the European market will be through <u>acquisition</u>.

<h3>What is an acquisition?</h3>

This is a business arrangement whereby a company purchases most or all of another company's shares to gain control of that company.

Thus, this business arrangement will allow Shiffon Electric Group to enter into the market effectively and have market share despite number of well-established incumbent enterprises.

Read more about acquisition

<em>brainly.com/question/24519774</em>

5 0
2 years ago
Suppose there is a decrease in the price of butter. What do we expect to happen to the demand for bread? Assume that bread and b
dimulka [17.4K]

Suppose there is a decrease in the price of butter.There will be an increase in demand for bread.

<h3>Option (B) is correct</h3>

<u>Explanation:</u>

Bread and butter are complementary goods. They are demanded and consumed together. So their demand are positively correlated which means an increase in demand of one will lead to the same increase the demand of other

If the Price of butter decreases,  it will lead to an increase in the demand for butter. With the increasing demand for butter, the demand for bread will automatically increase. Both demands will move in the same direction.

3 0
3 years ago
According to the law of supply, price and quantity move
gayaneshka [121]

Answer:

along a track in the same direction.

Explanation:

According to the law of supply, the price of the goods increases with an increase in the quantity of the goods supplied. Similarly, the price of the goods decreases with a decrease in the quantity of the goods supplied. This means that the price and quantity are directly proportional to each other. The price and quantity will move along a track in the same direction respectively.

6 0
3 years ago
Other questions:
  • Martinez, Inc. acquired a patent on January 1, 2017 for $41,800 cash. The patent was estimated to have a useful life of 10 years
    8·1 answer
  • in your own opinion what do think were angies challenges after she made the dicision about of becoming an entrepreneur
    9·2 answers
  • Macroeconomics Which of the following statements is true? a. A college degree does not influence the earnings of workers. b. The
    5·1 answer
  • Which of the following statements is true of effective business communication? Group of answer choices The communication is most
    9·1 answer
  • Start is to begin, employ is to -----.
    9·2 answers
  • You arrive at the local convenience store to find out that a robbery has just occurred. The store clerk appears to have been sta
    9·2 answers
  • At the end of the day, the cash register tape shows $1,300 in cash sales, but the count of cash in the register is $1,385. The p
    10·1 answer
  • Garcia Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pres
    15·1 answer
  • 7555566756999-565656565656
    15·1 answer
  • Identify the start and end events and the activities in the following narrative, and then draw the business process model using
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!