A Company Had Inventory of 14 Units at a Cost

question 79

Essay

A company had inventory of 14 units at a cost of $18 each on November 1. On November 2, they purchased 19 units at $19 each. On November 6, they purchased 15 units at $20 each. On November 8, they sold 36 units for $63 each. Using the LIFO periodic inventory method, what was the cost of the 36 units sold?

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Definitions:

ATC

Average Total Cost, which refers to the total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Purely Competitive

Describes a market structure where many firms sell identical products, and no single firm can influence the market price.

Negative Economic Profits

A situation where a firm's total revenue is less than its total costs, including both explicit and implicit costs.

Corn Market

The global or local marketplace where corn is traded as a commodity between buyers and sellers.