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2. The Bonner Co. uses the LIFO cost flow assumption and has a periodic inventory system. Bonner has a 21% tax rate on all items.
2. The Bonner Co. uses the LIFO cost flow assumption and has a periodic inventory system. Bonner has a 21% tax rate on all items. During 2019, the Bonner Co. had the following information about inventory: Units Cost per unit Beginning Inventory | 12.000 $80 5/1/19 Purchase | 10,000 $125 11/1/19 Purchase 8,000 $128 Sales through 12/28/2019 total 23,000 units and the sales price per unit is $200. Bonner will not have any more sales during 2019. At 12/28/2019, the Bonner Co. is set to make a purchase of 5,000 units at $130 per unit. The annual bonus awarded to Bonner's sales team is stated as a percent of gross profit. The manager of the sales team has approached the manager of the purchasing department to suggest that the 12/28/2019 purchase should be delayed into 2020 when more information about product demand is available. 2a. What is the effect of delaying the 12/28/19 on the 2019 gross profit? (include the amount of the difference in gross profit between the two situations of purchasing at 12/28/19 or not purchasing at 12/28/19) 2b. The purchasing manager approaches a colleague that works in the accounting department at Bonner about delaying the 12/28/20 purchase. What is the accounting department colleague likely to tell the purchasing manager about the consequences of delaying the 12/28/20 purchase into 2020? Be specific in your
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