Instruction 14-9
the Number of Cases of Merlot Wine Sold

question 184

Essay

Instruction 14-9
The number of cases of merlot wine sold by a Barossa Valley Winery in an 8-year period follows.
$$\begin{array} { c c } \text { Year }& \text { Cases of Wine } \\2003 & 270 \\2004& 356 \\2005 & 398 \\ 2006& 456 \\2007 & 358 \\2008 & 500 \\ 2009& 410 \\2010&376\\\end{array}$$
-Referring to Instruction 14-9,exponentially smooth the wine sales with a weight or smoothing constant of 0.2.

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Definitions:

Gain on Disposal

The financial profit obtained from the sale of a fixed asset when the sale price exceeds the book value of the asset.

Loss on Disposal

This reflects the financial loss incurred when an asset is sold or disposed of for less than its recorded book value.

Straight-Line Method

A method of allocating an asset's cost evenly over its useful life for purposes of depreciation.

Gain or Loss

Represents the difference between the selling price of an asset and its original purchase price, indicating a profit or a loss.