A Company Sells a Single Product and Had the Following

question 54

Essay

A company sells a single product and had the following beginning inventory, purchases, and sales during March.
$$\begin{array} { | r | r | r | r | } \hline & & \text { Number wi units } & \text { Price per unit } \\\hline & \text { Beginning Inventory } & 20 & 8 \\\hline \text { March 6 } & \text { Purchase } & 40 & 10 \\\hline 8 & \text { Purchase } & 50 & 9 \\\hline 10 & \text { Sale } & 45 & 13 \\\hline 12 & \text { Sale } & 35 & 13 \\\hline 30 & \text { Purchase } & 25 & 7 \\\hline\end{array}$$ Calculate the cost of the ending inventory under each assumption below:
(1) The compary uses a periodic inventory systern ard determiries cost on a FIFO basis.
Endinig inventory cost_________________

(2) The compary uses a periodic irmentory system ard deterniries cost an a weighted average basis. (Round average cost per wit to 2 decimals.)
Endinig invenitory cost__________________

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Definitions:

Freedom To Farm Act

A law passed in 1996 that revamped 60 years of U.S. farm policy by ending price supports and acreage allotments for wheat, corn, barley, oats, sorghum, rye, cotton, and rice.

U.S. Farm Subsidies

Government payments and financial support to farmers in the United States, aimed at stabilizing agriculture markets and incomes.

U.S. Farm Policy

A collection of laws and regulations that aim to support the agricultural sector in the United States through various means such as subsidies, price supports, and conservation initiatives.

Overallocation

The distribution of more resources or a larger share than is sustainable or equitable in a specific context.