A Sample of Charge Accounts at a Local Drug Store

question 55

Short Answer

A sample of charge accounts at a local drug store revealed the following frequency distribution of unpaid balances.

a.Determine the mean unpaid balance.
b.Determine the variance.
c.Determine the standard deviation.
d.Compute the coefficient of variation.

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Definitions:

Average Cost

The total cost of producing goods divided by the number of goods produced, representing the per-unit cost.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, after accounting for sales and new purchases.

LIFO Cost Method

A method of inventory valuation where the last items added to the inventory are considered the first ones sold.

Gross Profit

Gross profit is the financial metric obtained by subtracting the cost of goods sold from sales revenue, representing the core profitability of a company's products or services.