Tall Trees Gear Uses the Periodic Inventory Method and Recorded

question 40

Essay

Tall Trees Gear uses the periodic inventory method and recorded the following inventory and purchase transactions for the month of August,20X3.
$$\begin{array} { l l c l } \text { Bate } & \text { Tensection } & \text { Units } & \text { Unit Cost } \\\text { Aug 1 } & \text { Beginning inventory } & 2,800 \text { units } & \text { @\$1.10 } \\\text { Aug 3 } & \text { Purchase } & 500 \text { units } &@ \$ 1.20 \\\text { Aug 10 } & \text { Purchase} & 300 \text { units } & @\$ 1.30 \\\text { Aug 17 } & \text {Purchase } & 400 \text { units } & @\$ 1.40 \\\text { Aug 24 } & \text {Purchase } & 700 \text { units } & @\$ 1.55\end{array}$$ Determine the ending inventory balance at August 31 and the cost of goods sold for the month of August,20X3 for Tall Trees Gear.Tall Trees Gear sold 3,200 units during August,20X3.On August 31,a physical inventory count was conducted,and 1,500 units were on hand.Assume the company uses the last-in-first-out (LIFO)cost flow assumption.

Understand how changes in income affect demand for different types of goods.

Understand the relationship between quantity demanded and quantity supplied and how it affects market equilibrium.

Identify the factors that cause shifts in demand and supply.

Analyze the impact of technological advances on supply.

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Definitions:

Marginal Cost

The supplementary expense incurred by fabricating one more unit of a product or service.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain constant.

Cobb-Douglas Production Function

Production function of the form q = AK^aL^b, where q is the rate of output, K is the quantity of capital, and L is the quantity of labor, and where A, a, and b are constants.

Optimal Input Demands

The combination of inputs that minimizes the cost of producing a given output or maximizes output for a given cost.