Jones Bros Required:
Calculate the Difference Between Jones Bros

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?