Quicksilver Adopted LIFO in January 1, 2010, When the Inventory

question 43

Essay

Quicksilver adopted LIFO in January 1, 2010, when the inventory had a FIFO cost of $180, 000 ($10 per unit).At the end of 2010, inventory consisted of 18, 750 units at $12 per unit, and the ending inventory for 2011 consisted of 20, 000 units at $15 per unit.
Required:
a. Calculate the cost index to be used for 2010 and 2011 using the link-chain method.
b. Compute the endinginvent ory for 2010 and 2011 using dollar-value LIFO.

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Definitions:

Contingency Contract

A formal, written agreement between the therapist and client (or teacher and student) in which goals for behavioral change, reinforcements, and penalties are clearly stated.

Systematic Desensitization

A behavioral therapy technique used to reduce phobias through gradual exposure to the feared object or situation paired with relaxation techniques.

Person-Centered Therapy

A therapeutic approach founded by Carl Rogers that emphasizes an individual's self-worth and values being at the center of the therapy process.

Cognitive Consistency

A psychological theory that suggests individuals are motivated to maintain consistency between their beliefs, attitudes, and behaviors to reduce mental discomfort or dissonance.