Kamal runs a multi-national firm which manufactures hi-tech medical equipment. in addition to its normal product lines, the comp

a. Using FIFO, the Cost of Goods Sold (COGS) is $17,640, while the Ending Inventory equals $12,960. b. Under LIFO, COGS totals $19,160, while the Ending Inventory is $11,440. c. The Weighted Average COGS is $18,360, and the Weighted Ending Inventory is $12,240. For Cortez Company, the inventory particulars include initial stock of 100 units from $60/unit amounting to $6,000, first batch purchase of 150 units at $68 each totaling $10,200, and a second batch of 200 units at $72 each totaling $14,400, culminating in a total of 450 units valued at $30,600. Queries about how COGS and Ending Inventory figures manifest under various methods (FIFO, LIFO, and Weighted Average) can be addressed based on those computations.

Answer:

a) With a cost of $11, the operating income amounts to $660,000

b) If the cost is set at $9, the operating income is $540,000

c) Indeed, the manager is concerned with the chosen price. The Cutting Division operates as a cost center.  

Explanation:

a)                                              Cutting                          Assembly

Revenue                              $660,000                       $2,500,000

Cost of services

Incurred                               $660,000                        $360,000

Transferred-in                           $0                              $660,000

Total                                    $660,000                        $1,020,000

Operating income                    $0                              $1,480,000

At a cost of $11, operating income is calculated as 60,000 cords × $11 = $660,000

b)                                            Cutting                            Assembly

Revenue                               $540,000                       $2,500,000

Cost of services

Incurred                               $660,000                        $360,000

Transferred-in                           $0                              $540,000

Total                                    $660,000                        $900,000

Operating income              ($120,000)                       $1,600,000

At a cost of $9, the operating income is 60,000 cords × $9 = $540,000  

Answer:

2) assumption not made

Explanation:

The initial statement does not incorporate any assumptions regarding the actions of the companies concerning this issue; it merely presents a notion of equitable compensation.

It is possible that the author believes that very few or none of the companies actually provide financial compensation to homeowners for a decrease in their properties' market value, but this is not specified. The statement might also suggest that companies have previously offered compensation but are now reluctant to do so since no laws obligate them to continue. The author's stance is ambiguous and lacks clarity about the companies' current actions.

I perceive this method as unsustainable for two main reasons. Initially, from an agricultural standpoint, I believe it's imprudent to cultivate the same crop in a field for four consecutive years; crop rotation is preferable to prevent nutrient depletion from the soil. Secondly, from an economic viewpoint, it might be unwise as the farmer is putting everything at risk by assuming that wheat prices will remain high, whereas having a variety of crops could provide alternatives in case of a fall in wheat prices.