Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $fill in the blank 1 b. Last-in, first-out (LIFO) $fill in the blank 2 c. Weighted average cost $fill in the blan

Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method; and (c) weighted average cost method (round per-unit cost to two decimal places and your final answer to the nearest whole dollar). a. First-in, first-out (FIFO) $fill in the blank 1 b. Last-in, first-out (LIFO) $fill in the blank 2 c. Weighted average cost $fill in the blan

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
The Majestic Theater had 378 cans of Kettle Corn and 132 cans of regular Pop Corn on hand at month end. During the next month Majestic sold 142 cans of Kettle Corn and 67 cans of regular Pop Corn. Cans of each cost $28.40. What is the value of the inventory on hand at the end of the second month?
All Things Auto is a retailer that purchases and sells vehicle parts & accessories, including batteries. The business uses a perpetual inventory system and began the last quarter of 2020 with a merchandise inventory of 10 batteries of the “DieHard” brand at a total cost of $168,200. The following transactions, relating to the “DieHard” brand were completed during the quarter: October 5 Purchased 15 batteries at a cost of $17,020 each. October 14 Sold 18 batteries at $22,250 per battery October 22 Purchased 24 batteries at a cost of $18,175 each but the supplier gave a 4% quantity discount. November 10 Sold 15 batteries to Orion Auto Ltd and 10 batteries to Brown’s Auto Detailing at a price of $23,990 each. November 12 Owing to an increased demand for this brand of batteries, 30 batteries were purchased on account at a cost of $17,612 each. In addition, All Things Auto paid $288 in cash on each battery to have the inventory shipped from the vendor’s…
GIANTS, a sole trader extracted the following trial balance from her books at the close of business on 31st December, 2016: Dr Cr GHȻ GHȻ Purchases and sales 61,420 127,245 Inventory 1 January, 2016 7,940 Capital 1 January, 2016 25,200 Bank overdraft 2,490 Cash 140 Discounts 2,480 62 Returns 3,486 1,356 Carriage outwards 3,210 Rent and insurance 8,870 Allowance for doubtful debts 630 Fixtures and fittings 1,900 Van 5,600 Accounts receivable and trade payable 12,418 11,400 Drawings 21,400 Wages and salaries 39,200 General office expenses 319 168,383 168,383 Additional information: (a) Inventory 31st December, 2016 GHȻ 6,805 (b) Wages and salaries accrued at 31st December, 2016 GHȻ 3,500; Office expenses GHȻ 16 (c) Rent prepaid 31st December, 2016 GHȻ 600 (d) Increase in allowance for doubtful debts by GHȻ 110 to GHȻ 740 (e) Provide for depreciation as follows: Fixtures and fittings GHȻ 190 and Van GHȻ 1,400 5 Required: a) Prepare the income statement…
ABC Company had the following inventory at year-end:Cost NRVProduct A 2,200,000 2,500,000Product B 1,500,000 1,200,000Product C 650,000 530,000Product D 720,000 710,000What amount should be reported as inventory at year-end?
ABC Company purchased its inventory at a lump price of P20,000. Relative sales value for each type of inventory was: Inventory XX, P10,000 Inventory YY, P4,000 Inventory ZZ, P10,000 How much would be the cost assigned to inventory XX, YY an ZZ respectively? 10,000. 4,000 and 10,000 respectively 10,000, 4,000 and 8,333 respectively 8,333, 3,333 and 8333 respectively 6667, 6667 and 6667 respectively
Camille forecasts to sell 575 units of the perfume she is selling by the first week of December. At the end of the 1st week of December, she was able to disposed 500 perfumes at Php150 each. Of these 500 units, she gave a total of 20 giveaways. The total cost for each perfume is Php120. Determine Camille’s net sales volume. * a. 75 b. 480 c. 500 d. 20 2. The amount of your product that you will need to produce and sell to cover total costs of production. * a. Break even sales volume b. Sales volume percentage c. Sales volume
You are the buyer for a major U.S. health care company. As buyer, your job is to procure and buy parts for the production of X-Ray machines. The buyer from your sister plant in Paris, France has contacted you to supply them with 5 center sections, (a major component used in the X-Ray tube), because they will run out of these parts within 3 days. The center section is procured from a single source supplier in England, weighs approximately 40 pounds, is made of lead and has a 6-week lead time, (the time your supplier requires to manufacture the center section). Based on this criterion, answer the following questions: What mode of transportation is appropriate for shipping this part to Paris, France? What carrier will you use? Which carrier offers the best value?
Ali is the manager of a well reputed organization. He is assigned to auction some assets of the firm. Instead of organizing an auction Ali compiles a list of items and puts an advertisement on the paper stating that anyone who is willing to purchase the said articles for Rs. 1 Lac can contact him directly by 15th April 2021 through email only. Ahmed saw the advertisement and emailed Ali on 12th April asking for pictures of the items or if it was possible for him to view the items. Ali provided the pictures. Ahmed then emailed Ali that he is willing to purchase the said articles for Rs. 90 thousand and wrote that if Ali did not reply he will assume that Ali has accepted the offer. On 14th April at 3 pm, Saad emailed Ali and said the following, “I will purchase the listed articles.” On 14th April at 4:30 pm, Khan called Ali and brokered a deal to purchase the articles. Answer the following questions Advise Saad if he can purse Ali to obtain the articles
Ali is the manager of a well reputed organization. He is assigned to auction some assets of the firm. Instead of organizing an auction Ali compiles a list of items and puts an advertisement on the paper stating that anyone who is willing to purchase the said articles for Rs. 1 Lac can contact him directly by 15th April 2021 through email only. Ahmed saw the advertisement and emailed Ali on 12th April asking for pictures of the items or if it was possible for him to view the items. Ali provided the pictures. Ahmed then emailed Ali that he is willing to purchase the said articles for Rs. 90 thousand and wrote that if Ali did not reply he will assume that Ali has accepted the offer. On 14th April at 3 pm, Saad emailed Ali and said the following, “I will purchase the listed articles.” On 14th April at 4:30 pm, Khan called Ali and brokered a deal to purchase the articles. Answer the following questions. Differentiate between an offer and invitation to treat. In para 2. When Ahmed asks…
33. During a move to a new location, the inventory records of 98 Degrees were misplaced. The bookkeeper has been able to gather some data for the July purchases: Units Unit cost Total cost July 5 10,000 65 650,000 10 12,000 70 840,000 15 15,000 60 900,000 25 14,000 55 770,000 On July 31, 17,000 units were on hand. The sales for July amounted to P6,000,000 or 60,000 units at P100 per unit. The entity always used a perpetual FIFO inventory costing system. Gross profit on sales for July was P2,400,000. What was the cost of the inventory on July 1?34. Thug Life Company provided the following information at year-end: Cost Retail Inventory, January 1 700,000 1,100,000 Purchases 4,200,000 5,700,000 Additional markup 200,000 Markdown 100,000 Sales 5,400,000 Under the approximate lower of average cost or NRV…
XYZ’s Hardware is a small family business in Dubai, UAE. The owners, Abdullah and Omar,must use every square foot of store space as profitably as possible. They have never keptdetailed inventory or sales records. As soon as a shipment of goods arrives, the items areimmediately placed on store shelves. Invoices from suppliers are only kept for tax purposes.When an item is sold, the item number and price are rung up at the cash register. The ownersuse their own judgment in identifying items that need to be reordered.a). How could information systems help Abdullah and Omar run their business?b). What data should these systems capture?