ANSWERS TO QUESTIONS
(a) Adis Abeba Wholesalers Inc. Computation of Internal Conversion Price Index for Inventory Pool No. 1 Double Extension Method Current inventory at current-year cost 2006 2007 Product A 17,000 X $35 = $595,000 13,000 X $40 = $520,000 Product B 9,000 X $26 = 234,000 10,000 X $32 = 320,000 $829,000 $840,000 Current inventory at base cost Product ... ................
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