User Account

All Pages

Compute the internal conversion price indexes

Assignment Help Financial Management
Reference no: EM132408389

Question

On January 1, 2020, Concord Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Concord continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Concord uses internal conversion price indexes and the multiple pools approach under which substantially identical inventory items are grouped into LIFO inventory pools. The following data were available for inventory pool no. 1, which comprises products A and B, for the 2 years following the adoption of LIFO.

FIFO Basis per Records

Unit Total Units Cost Cost

Inventory, 1/1/20

Product A 8,800 $30 $264,000

Product B 7,920 25 198,000 $462,000

Inventory, 12/31/20

Product A 14,520 36 $522,720

Product B 7,920 26 205,920 $728,640

Inventory, 12/31/21

Product A 11,440 40 $457,600

Product B 8,800 32 281,600 $739,200

A) Compute the internal conversion price indexes for 2020 and 2021. (Round price index to 2 decimal places, e.g. 162.)

B) Compute the inventory amounts at December 31, 2020 and 2021, using the dollar-value LIFO inventory method. (Round answers to 0 decimal places, e.g. 5,620.)

Reference no: EM132408389

Questions Cloud

Discuss the nature of this lease to capital and hinton : The term of the noncancelable lease is 12 years, with no renewal option. The equipment reverts to the lessor at the termination of the lease.
Cellular and molecular level of muscle contractions : Use what you know about what is happening on the cellular and molecular level of muscle contractions.
The unadjusted trial balance and adjusting journal entries : What is the relationship between the Unadjusted Trial Balance, adjusting journal entries, and the Adjusted Trial Balance.
Position to cause flexion of the lumbar spine : What is a muscle that contracts concentrically from a supine position to cause flexion of the lumbar spine?
Compute the internal conversion price indexes : Compute the inventory amounts at December 31, 2020 and 2021, using the dollar-value LIFO inventory method. Compute the internal conversion price indexes.
Produce contraction of gatrocnemius muscle : What nerve fibre type would innervate it to produce contraction of Gatrocnemius muscle?
Threat to confidentiality-integrity or availability of data : Analyzing a subject you find in this article related to a threat to confidentiality, integrity, or availability of data.
Keep the movements of muscles : The movement of the muscles are divided into different planes or directional motions. Keep the movements of muscles in mind as you answer the questions below:
Playing baseball and a line drive comes out of nowhere : Imagine you are playing baseball and a line drive comes out of nowhere. You do not even realize till the last second that it is heading for your face

Reviews

Write a Review

Financial Management Questions & Answers

  Hardware paid an annual dividend

Miller Brothers Hardware paid an annual dividend of $1.15 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 12 percent rate of return, how much are you willing to pay..

  Annual deposit must he make to fund retirement account

How much money will Mr. Burns need at age 100 and how large of an annual deposit must he make to fund this retirement account?

  Estimate the convexity of the liabilities and assets

Estimate the convexity of the liabilities and assets by calculating present values at 5.90% and 6.10% per annum.

  When responding to breach of contract

What will the court look at when responding to a breach of contract?

  Calculate return on equity and ROE

Calculate return on equity, ROE, under each of the three economic scenarios before any debt is issued.

  What specific violations were alleged in the case

Commonwealth of Kentucky v. Jenssen Pharmaceuticals discusses various allegations of violations of FDA labeling and marketing laws against Jenssen Pharmaceuticals. What specific violations were alleged in the case, and who are these laws designed to ..

  What is the dollar amount of each payment jan receives

What is the dollar amount of each payment Jan receives? How much interest must Jan report on Schedule B for the first year?

  What will be the internal rate of return

What will be the average finance return (in %)? What will be the internal rate of return? What will be the profitability index?

  Construct a growth return profile for the current year

In 2011, analysts were forecasting EPS to be $33.94 for the year.  -what conclusions do you arrive at pricing Google relative to the market as a whole looking forward?

  Determine the needed amounts so they have the money

Tom and Debbie are starting to take their retirement planning seriously. They are both 46 and plan to retire in 20 years at the age of 66.

  Methods results in net present value of zero

Which of the following methods results in a net present value of zero ? If a bound is issued at a premium the coupon rate is.

  How could you use a collar to reduce your risk

How could you use a collar to reduce your risk of loss from a decline in the price of the stock?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd