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Cortez company sells chairs that are used at computer stations. its beginning inventory of chairs was 220 units at $45 per unit. during the year, cortez made two batch purchases of this chair. the first was a 310-unit purchase at $50 per unit; the second was a 360-unit purchase at $52 per unit. during the period, it sold 570 chairs.

User Tsega
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Final answer:

The question deals with inventory management for the Cortez company, focusing on the purchase and sale of chairs. Additionally, an example is provided about a computer company's fixed and marginal costs, which is another key concept in business cost accounting.

Step-by-step explanation:

The student's question pertains to an inventory management scenario within a business context where the Cortez company maintains an inventory and makes sales of chairs designed for computer stations. The given details about inventory purchases and sales can be used to calculate various inventory management metrics, such as the cost of goods sold (COGS) and ending inventory, using different accounting methods like First-in, First-out (FIFO); Last-in, First-out (LIFO); or the Weighted Average Cost method.

The example provided about a computer company's fixed and marginal costs highlights another aspect of business management, specifically in the production and cost analysis of producing home computer systems. Understanding fixed costs, marginal costs, and how they contribute to the total cost and pricing of goods are crucial for effective business decision-making.

However, it seems there may be a mix-up between the inventory example given and the margin cost example of the computer company, which deals with production costs rather than inventory tracking. The student might be looking to understand the principles of cost accounting in both inventory management and production cost structures.

User Bryan Irace
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