Question

Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week. The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping costs in the negotiated purchase price (mixers will be shipped FOB destination). Assume that Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory. Inventory as on January 31, 2019 represents three deluxe mixer purchased at a unit cost of $595 average cost.

Answer 1

Step-by-step explanation:

Base on the scenario been described in the question, we have the following

Quantity

Unit rate

Total cost

m

Jan 31

Opening

3

$595.00

$1,785.00

st

Feb 2

Purchases

2

$600.00

$1,200.00

5

Mar 2

Purchases

1

$618.00

$618.00

6

Apr 1...