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:
Georgeland only has an absolute advantage in clothing production, not a comparative one.
Explanation:
Absolute advantage refers to a company's capacity to generate more of a product using the same resources compared to its rivals, typically due to a more effective production method.
In contrast, comparative advantage involves producing goods with a lower opportunity cost, allowing for competitive pricing.
Georgeland can manufacture 18 clothing units annually, while Alland's annual output is 16 units; therefore, Georgeland displays absolute advantage.
However, Georgeland incurs an opportunity cost of 36 food units for producing clothing, which exceeds Alland's 32 food units; hence, Georgeland lacks a comparative advantage in clothing production.
The storage capacity must be at least 1,095 to accommodate their EOQ
Explanation:
We will calculate the economic order quantity, which identifies the order amount that minimizes inventory costs. This size must meet the minimum requirements for storage.
D = annual demand = 100 units daily x 300 = 30,000
setup cost = ordering cost = 200
H = holding cost = 10
EOQ = 1095.445115 = 1,095
The storage must have a capacity of at least 1,095 to accommodate their EOQ
How to Remember:
The annual demand and ordering cost are factored into the numerator. The holding cost is in the denominator.
<span>#1) What types of laws could be established using the Elastic Clause?
Response: Initially, it’s important to note that the Elastic Clause refers to a provision in the Constitution, specifically Clause in Article I, Section 8, which empowers Congress to enact all laws deemed "Necessary and Proper." The interpretation of this clause has sparked considerable debate about Congress's authority to legislate on matters not explicitly mentioned in the Constitution. Among the various possibilities, the most plausible law that could be enacted under the Elastic Clause is A) regulations for ratifying foreign treaties.
<span>I trust this is helpful, Regards. </span></span>
