Jones Bros Required:
Calculate the Difference Between Jones Bros

question 71

Essay

Jones Bros.Tools,Inc.had the following layers in its LIFO table saw inventory at January 1,2015.The company sets its selling price at 200% of replacement cost at the time of sale.Replacement cost as of January 1,2015 was $835 per unit and remained unchanged throughout 2015.During 2015,the company purchased 650 units and sold 1,125 units.
$\begin{array}{ccc}\text { Year LIFO Laver Added } & \text { Units } & \text { Unit Cost } \\\hline 2012 & 200 & \$ 740 \\2013 & 180 & 780 \\2014 & 175 & 820\end{array}$
Required:
Calculate the difference between Jones Bros.Tools,Inc.'s current cost operating margin (on a replacement cost basis)and the LIFO margin as reported by the company in 2015.What does the difference represent?

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Definitions:

Predictive Statistics

A branch of statistics focused on analyzing current and historical data to make predictions about future or otherwise unknown events.

Historical Data

Data collected from past events and time periods, used to analyze trends, forecast future occurrences, or serve as benchmarks.

Forecast

The process of making predictions based on past and present data trends, commonly used in weather, economic, and business planning contexts.

Population

The entire group of individuals or items that is the subject of a statistical study.