If you bought a share of common stock, you would probably expect to receive dividends plus an eventual capital gain. Would the d
1 answer:
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Answer:
$6745
Explanation:
Given: Beginning inventory is 77 units at the cost of $19 per unit.
Purchased inventory is 476 units at $19 per unit.
Sales during the month is 355 units at $45 per unit.
Now, let´s find the cost of goods sold using LIFO method.
We know, LIFO method is Last in first out, which sell out inventory, which are most recently purchased. In a period of rising prices, LIFO inventory method tends to give the highest reported cost of goods sold.
As sales unit is 355 units.
Let´s take units from recent purchased inventory.
Cost of good sold=
Hence, the cost of goods sold using the LIFO method is $6745.
Answer:
Minimal Net cost: $ 335,000
Explanation:
In order to minimize net costs, the first step is to obtain the unitary cost including all the concepts: production + storage
The period with lower production cost is Month 1 ( $ 80 ) , and after adding storage cost ( $ 20 ) it sums $ 100.
The second Month is the next convenient one in terms of production costs ( $ 100 ).
However, is not convenient to produce the whole demand in this periods because the extra stock remaining will increase storage expenses, specially considering that storage cost is accumulative ( $ 20 per unit per each end of month).
Remaining inventory after Month 4: not efficient, as $ 60 does not cover production cost.
Therefore, the best option is:
Month 1 : to produce from 600 up to 1,400 units
Month 2 : to produce from 0 up to 800 units, according to Month 1 production ( formula= 1,400 less Month 1 production)
Month 3 : 1,200 units
Month 3 : 900 units.
Net cost: $ 335,000
*Optionally, it is correct producing 600 u in Month 1, and 800 u in Month 2: the result is the same ( Month: 1 $ 80 + $ 20 = Month 2: $ 100 )
