Wise Company Adopted the Dollar-Value LIFO Method on January 1

question 8

Multiple Choice

Wise Company adopted the dollar-value LIFO method on January 1, 2010, at which time its inventory consisted of 6,000 units of Item A @ $5.00 each and 3,000 units of Item B @ $16.00 each.The inventory at December 31, 2010 consisted of 12,000 units of Item A and 7,000 units of Item B.The most recent actual purchases related to these items were as follows: Using the double-extension method, what is the price index for 2010 that should be computed by Wise Company?

• A)108.33%
• B)109.59%
• C)111.05%
• D)220.51%

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Definitions:

Natural Resources

Raw materials and substances occurring in nature that can be used for economic gain, such as minerals, forests, water, and fertile land.

Protecting Environment

Activities and practices aimed at preserving natural resources and reducing pollution and waste to safeguard the planet's ecosystems.

Probate Process

The legal procedure through which a deceased person's will is validated, and their estate is distributed to heirs and beneficiaries.

Property Transfer

The act of transferring ownership of property from one party to another, including real estate, vehicles, or other assets.