Periodic FIFO
Maine Corporation Sells Item a as Part of Its

question 74

Essay

Periodic FIFO
Maine Corporation sells item A as part of its product line, using the periodic system. Information as to balances on hand, purchases, and sales of item A are given in the following table for the first six months of 2020:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Quantities}$

$\begin{array} { l r r r c }&&&&\text { Unit Price}\\ \text { Date } & \text { Purchased } & \text { Sold } & \text { Balance } & \text { of Purchase } \\ \text { January 11 } & - & - & 300 & \$ 5.00 \\ \text { January 24 } & 1,300 & - & 1,600 & 5.20 \\ \text { February 8 } & - & 300 & 1,300 & - \\ \text { March 16 } & - & 560 & 740 & - \\ \text { June 11 } & 600 & - & 1,340 & 5.60 \end{array}$
Instructions
Calculate the cost of goods sold for the first six months of 2020 using the FIFO cost formula.

Grasp the significance of product-line pricing and how it impacts profitability across a range of products.

Understand the impact of pricing decisions on market share and competitive dynamics, including price wars.

Recognize the use and benefits of dynamic pricing in responding to market conditions.

Identify the factors influencing the decision-making process for price cutting and its effects.

---

Definitions:

Monopolistic Producer

A market situation where a single producer controls the majority of the market for a particular good or service, restricting competition.

Marginal Cost

The financial implication of manufacturing an additional unit of a product or service.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers in a given time period.

Supply Curve

A supply curve graphically represents the relationship between the price of a good and the quantity of the good that suppliers are willing to sell, typically showing a direct relationship where higher prices incentivize higher supply.