Periodic Inventory Systems Tres Chic Uses a Periodic Inventory System. the Beginning Inventory

question 25

Essay

Periodic inventory systems
Tres Chic uses a periodic inventory system. The beginning inventory of a particular product, and the purchases during the current year, were as follows:

At December 31, the ending inventory of this product consisted of 850 units.
Determine the cost of the year-end inventory and the cost of goods sold for this product under each of the following methods of inventory valuation (Rounded):

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Definitions:

Mixed Costs

Costs with both variable and fixed characteristics, sometimes called semivariable or semi-fixed costs.

Variable Components

Parts of a cost or expense that change in proportion with changes in the level of business activity or production volume.

Fixed Components

The elements of a business's costs that remain constant regardless of the level of production or sales activity.

Contribution Margin

The amount by which sales income exceeds variable expenses, which is utilized to pay off fixed expenses and create profit.