Answer:
I learned how to do basic math and now I can do algebra
Explanation:
In my understanding, this assignment wants you to evaluate the decision made by the management officer, in her attempt to improve the business position.
First of all, net profit figure shows the profitability of the business. Net profit figure means the total profit earned minus all the costs incurred in running the business. Higher net profit figure in year 1 might indicate a favourable position, as it could be that higher profit is generated from using whatever method/machine they use in year 1, or running this machine incurred less cost. In year 2, they didn't necessarily earn lower profit, but running the new machine might be more costly.
Next, rate of productivity growth refers to the growth in quantity of output produced. If more output can be produced, this means higher efficiency. This means that the efficiency of production in year 2 is more than in year 1.
Thirdly, the number of customer's complaints is important in evaluating the business' goodwill, in this case, its position in the society. Without good relationship with the public, a company may lose its customer. It is always important to keep clients satisfied since they're the source of income to the business. This means that the management decision in year 2 is more favourable than in year 1.
Last but not least, rate of absenteeism can be evaluated in terms of productivity . Higher absenteeism means lower productivity, lower output but higher cost to the business since they're paying salaries to workers who don't produce output to sell. Less output to sell means less income can be earned. In year 1, the business productivity is higher than in year 2.
In year 2, the business has a boost in their efficiency & reputation. Although less profit earned, it is likely that this will grow in the future. Staff attendance can be improved by encouragement such as giving incentives for example, provision of more holidays.
I hope this is helpful!
Answer:
- <u>Sale, March 14 (1,380 units) cost of goods sold = $117,200</u>
- <u>Sale, August 31 (1,550 units ) cost of goods = $96,100</u>
- <u>Ending inventory = 1,800 units</u>
<u>Explanation</u>:
a. Cost Of Goods Sold Using LIFO
<u>1. Sale, March 14 (1,380 units)</u>
- from May 1 purchase)
1,130 units at $90= 1130*90= $101,700
+
from January 30 purchase
250 units from 2,150 units at $62 = $15,500
Total= 15,500+101,700= $117,200
<u>2. Sale, August 31 (1,550 units )</u>
- from January 30 purchase
1,550 units from 1900 units leftover
1550 at $62 = 1550*62= $96,100
b. Ending inventory
350 units leftover from January 30 purchase + 1,450 units of Beginning inventory, January 1 = 1,800 units
