- Purchased 40 units at $100 each
- Sold 15 units at $150 each
- Sold 10 units at $150 each
- Purchased 30 units at $105 each
- Sold 25 units at $150 each
- Purchased 30 units at $110 each
1. Calculate the ending inventory, the cost of goods sold, and the gross profit for the December31, 2011, financial statements under each of the following assumptions:
a. FIFO periodic
b. LIFO periodic
c. Weighted average cost periodic
This solution provides and illustration of how the different inventory methods are calculated.
Managerial Accounting - Jefferson Company
Jefferson Company has two divisions: Jefferson Bottles and Jefferson Juice. Jefferson Bottles makes glass containers, which it sells to Jefferson Juice and other companies. It has a capacity of 10 million bottles a year. Jefferson Juice currently has a capacity of 3 million bottles per year. Jefferson Bottles has a fixed cost of $100,000 per year and a variable cost of $0.10/bottle. Jefferson Bottles can currently sell all of its output at $0.15/bottle.
a. What should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions make appropriate decentralized planning decisions?
b. If Jefferson Bottles can sell only 5 million bottles to outside buyers,
What should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions make appropriate decentralized planning decisions?