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Alex
3 years ago
12

Crane Company uses a periodic inventory system. Details for the inventory account for the month of January, 2020 are as follows:

Units Per unit price Total Balance, 1/1/20 150$4.00$600 Purchase, 1/15/20 705.10 357 Purchase, 1/28/20 705.30 371 An end of the month (1/31/20) inventory showed that 110 units were on hand. If the company uses LIFO, what is the value of the ending inventory
Business
1 answer:
vovikov84 [41]3 years ago
4 0

Answer:

Crane Company

If Crane Company uses LIFO, the value of the ending inventory is:

= $440.

Explanation:

a) Data and Calculations:

                               Units   Unit Cost   Total Cost

1/1/20 inventory      150      $4.00         $600

1/15/20 Purchase,    70         5.10            357

1/28/20 Purchase,   70        5.30            371

Total                      240                       $1,328

1/31/20 inventory   110       $4.00         $440 ($4.00 * 110)

b) The LIFO method assumes that goods that are sold first are the last that were purchased.  Therefore, the cost of the ending inventory is usually based on the cost of the earlier inventory purchased.  In our case, the cost per unit was based on the beginning inventory balance.

 

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The stockholders’ equity section of Pretzer Corporation consists of common stock ($10 par) $2,650,000 and retained earnings $532
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Answer:

A. $2,650,000 $3,312,500

B.$532,000 $291,500

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Explanation:

Before Dividend After Dividend

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(b)Outstanding shares

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$14×$26,500=$371,000-265,000

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3 years ago
If the marginal propensity to consume (MPC) is 0.75, and if the goal is to increase real GDP by $400 million, then by how much w
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