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kodGreya [7K]
3 years ago
14

on december 31 of last year, wolfson corporation had in inventory 450 units of its product, which costs $22 per unit to produce.

during january, the company produced 850 units at a cost of $25 per unit. assuming that wolfson corp. sold 800 units in january what was the cost of goods sold(assume FIFO inventoryaccounting)
Business
1 answer:
11Alexandr11 [23.1K]3 years ago
8 0

Answer:

$18,650

Explanation:

FIFO means first in, first out. It means its the oldest inventory that are sold first .

If the company sold 800 inventory, the 800 would be taken from the beginning inventory which is a total of 450 and the remaining 350 would be taken from the inventory produced in January.

Cost of goods sold

450×$22 = $9,900

350 ×$25= $8,750

$9,900 + $8,750 = $18,650

I hope my answer helps you

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Falling demand refers to a situation where the sales volume of a good or service is on a continuous decline compared to the previous seasons. Consumers are no longer finding that particular product or service appealing to buy. Falling or declining is also referred to as faltering demand.

The introduction of a similar product by competitors at a lower price may lead to a decline in demand for the existing goods. Customers will prefer the new cheaper product. As a result, the more expensive and old product will experience falling demand.

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