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Feliz [49]
3 years ago
10

ABC Corporation adopted the dollar-value LIFO method of inventory valuation on December 31, 2019. Its inventory at that date was

$1,000,000 and the relevant price index was 1.00. Information regarding inventory for subsequent years is as follows: Date Inventory at Current Year Prices Price Index 12/31/2019 1,000,000 1.00 12/31/2020 1,285,200 1.08 12/31/2021 1,439,100 1.23 12/31/2022 1,625,000 1.30 What is the cost of the ending inventory at December 31, 2021 under dollar-value LIFO
Business
1 answer:
Lana71 [14]3 years ago
4 0

Answer:

$1,209,100

Explanation:

The computation of the cost of the ending inventory as on Dec 31,2021 is shown below:

= Inventory as on Dec 31,2019 + {(Inventory as on Dec 31,2021 ÷ 2021 price index × 2019 price index) - Inventory as on Dec 31,2019} × 2021 price index ÷ 2019 price index

= $1,000,000 + {($1,439,100 ÷ 1.23 × 1) - $1,000,000} × 1.23 ÷ 1

= $1,000,000 + ($1,170,000 - $1,000,000) × 1.23

= $1,000,000 + $209,100

= $1,209,100

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Answer:

c. $3,600

Explanation:

The total cost of orange juice = $30,400 + $13,000

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So, the profit on the orange juice = $53,000 - $43,400 = $9,600

Profit when oranges are sold without juice = $36,400 - $30,400

Profit when oranges are sold without juice =  $6,000

So, extra income = $$9,600 - $6,000 = $3,600

Thus, the net benefit (additional income) from processing the oranges into orange juice instead of selling as is would be is $3,600

5 0
2 years ago
Nancy owns 10% interest in ABC Corporation and 20% of the outstanding shares of XYZ Corporation. Her son Nick owns 60% of the ou
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Answer:

20%

Explanation:

Ownership of XYZ Corp. in ABC Partnership = 100% of ABC Partnership * Percentage owned by XYZ Corp.

= 100% * 50%

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= 10% + (50% * 20%)

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5 0
3 years ago
The following data come from the financial records of Campbell Corporation for Year 3: Sales $ 840,000 Interest expense 5,000 In
kumpel [21]

Answer:

the times was interest earned in Year 3 is 11.2 times

Explanation:

The computation of the times interest earned ratio is given below:

The times interest earned ratio is

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= ($25,500 + $25,500 + $5,000) ÷ $5,000

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Hence, the times was interest earned in Year 3 is 11.2 times

The same is to be relevant

7 0
3 years ago
How did economic prosperity during the 1920s affect consumers?
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Answer:

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The lifestyles of Americans were significantly effected by the availability of labor saving products, luxury items and the emergence of mass advertising campaigns and consumerism.

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2 years ago
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