Business, 25.03.2020 17:03 boi3456

Giddens Company adopted the dollar-value LIFO inventory method on December 31, Year 1. On December 31, Year 1, Giddens' inventory was in a single inventory pool and was valued at $400,000 under the dollar-value LIFO method. Inventory data for Year 2 are as follows:

12/31 Year 2 inventory at year-end prices $550,000
Price index at 12/31 Year 2 (base year Year 1) 110

Giddens' inventory at dollar-value LIFO at December 31, Year 2 is:

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Answer from: xojade

The value of inventory at Dollar value LIFO is $510,000

Explanation:

dollar-value LIFO method

This is one of the techniques use to integrate inventory items into pool and then valuation is applied on pool rater than on individual item

To calculate the dollar value of ending inventory

we must

Determine value of ending inventory

Determine the difference between ending inventory and beginning inventory at the price of previous year

Determine the difference between ending inventory and beginning inventory at the current price

Add beginning inventory and difference at the current price to get the value of ending inventory on the basis of dollar value LIFO method

The information related to inventory of the company for the current year is given as follows

Beginning inventory is $400,000

Base price index is 100

Ending inventory at current price index is $550,000

Current price index is 110

INVENTORY VALUE AT DOLLAR VALUE LIFO IS CALCULATED AS FOLLOWS

Ending inventory value at base price index = $ $550,000\times\frac{100}{110}$

= $500,000

The increase in inventory at base price index is $500,000 - $400,000

= $100,000

The increase in inventory at current price index is $100,000 × $\frac{110}{100}$

= $110,000

Calculate inventory at end

inventory at end = inventory at the beginning + increase in inventory at current price

$400,000+$110,000

= $510,000

Therefore, value of inventory at Dollar value LIFO is $510,000

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Answer from: Quest

the correct answer is b.)

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Giddens Company adopted the dollar-value LIFO inventory method on December 31, Year 1. On December 3...

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