Thomas’s Televisions produces television sets in three categories: portable, midsize, and flat-screen. On January 1, 2020, Thomas adopted dollar-value LIFO and decided to use a single inventory pool. The company’s January 1 inventory consists of:
Category

Quantity

Cost per Unit

Total Cost

Portable 9,000 $100 $ 900,000
Midsize 12,000 250 3,000,000
Flat-screen 4,500 400 1,800,000
25,500 $5,700,000
During 2020, the company had the following purchases and sales.
Category

Quantity
Purchased

Cost per Unit

Quantity
Sold

Selling Price
per Unit

Portable 22,500 $110 21,000 $150
Midsize 30,000 300 36,000 400
Flat-screen 15,000 500 9,000 600
67,500 66,000

a. Calculate price index. (Round price index to 4 decimal places, e. g. 1.4562.)
b. Compute ending inventory, cost of goods sold, and gross profit. (Round answers to 0 decimal places, e. g. 6,548.)
c. Assume the company uses three inventory pools instead of one. Compute ending inventory, cost of goods sold, and gross profit. (Round price index to 2 decimal places, e. g. 1.45 and final answers to 0 decimal places, e. g. 6,548.)

Acompany determined that the budgeted cost of producing a product is $30 per unit. on june 1, there were 80,000 units on hand, the sales department budgeted sales of 300,000 units in june, and the company desires to have 120,000 units on hand on june 30. the budgeted cost of goods sold for june would be

Lo.2, 3, 9 lori, who is single, purchased 5-years class property for $200,00 and 7-years class property for $420,000 on may 20, 2018. lori experts the taxable income derived form the business (without regard to the amount expensed under ⧠179) to be about $550,000. lori has determined that she should elect immediate ⧠179 expensing in the amount of $520,000, but she doesn’t know which asset she should completely expense under ⧠179. she does not claim any available additional first-year depreciation. a. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 5-year class asset. b. determine lori’s total cost recovery deduction if the ⧠179 expense is first taken with respect to the 7-year class asset. c. what is your advice for lori? d. assume that lori is in the 24% marginal tax bracket and that she uses ⧠179 on the 7-year asset. determine the present value of the tax savings from the depreciation deductions for both assets. see appendix g for present value factors, and assume a 6% discount rate. e. assume the same facts as in part (d), except that lori decides not to use ⧠179 on either asset. determine the present value of the tax savings under this choice. in addition, determine which option lori should choose. f. present your solution to parts (d) and (e) of the problem in a spreadsheet using appropriate microsoft excel formulas. e-mail your spreadsheet to your instructor with a two-paragraph summary of your findings.

Within the relevant range, if there is a change in the level of the cost driver, then a. total fixed costs will remain the same and total variable costs will change b. total fixed costs will change and total variable costs will remain the same c. total fixed costs and total variable costs will change d. total fixed costs and total variable costs will remain the same