LIFO uses the last unit costs for Cost of Goods Sold on the income statement and the first unit costs for Inventory on the balance sheet.
<h3>What is LIFO?</h3>
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
For example, if beginning inventory consists of 10 units at $10 per unit. In the middle of the month, 10 units were bought at $15 per unit. At the end of the month, 10 units were sold. Using LIFO, the cost of goods sold would be $150 ( 10 x 15). Ending inventory would be $100 ($10 x 10).
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Answer:
Closing value of inventory = $357 for 21 units
Explanation:
As for the provided information we have,
Under FIFO method we know,
FIFO means First In First Out, under this the goods bought at earliest are sold earliest.
That means first opening inventory is sold, then the inventory purchased at the earliest.
Now we have,
Opening Inventory = 27 units @ $17 = $459
Purchases:
Aug 5 22 units @ $16 = $352
Aug 12 26 units @ $17 = $442
Provided 54 units are sold on Aug 15, that means, opening inventory of 27 units, 22 units bought on Aug 5, and 54 - 27 - 22 = 5 units from purchases on Aug 12.
Therefore, after sale units left = 26 - 5 = 21 units
Thus, closing value of inventory = $357 for 21 units
Could the answer be advertisements
The problem is missing some parts:
First, how many parts should you purchase each time you
place an order.
H=.2*$4 = $0.80
S= $800
R = 50,000
Q = 2SRH
= 2(800) (50000) (.8)
= 10,000 units
The second question is how many timer per year will you
place orders.
Required order = R/Q
= 50000/10000
= 5 times
Answer:
D. estimate price elasticity of demand by experimenting with different prices
Explanation:
Price elasticity of demand measures the degree of responsiveness of quantity demanded to changes in price.
Demand is elastic if a small change in price has a greater effect on the quantity demanded.
Demand is inelastic if a change in price has little or no effect on quantity demanded.
Demand is unit elastic if a change in price has the same proportional change on quantity demanded.
By experimenting with different prices and monitoring the different quantities demanded at each price, a new firm can determine the elasticity of demand for their product.
Price controls are set at the discretion of the government and not by firms.
Shortages imply they quantity demanded exceeds quantity supplied. It doesn't give any information on elasticity of demand.
I hope my answer helps you
