Larkspur, Inc. uses a perpetual inventory system. Data for product E2-D2 include the purchases shown below. Date Numer of Units Unit priceMay 7 46 $10July 28 36 15On June 1, Larkspur, Inc. sold 23 units, and on August 27, 36 more units. Calculate the average cost of the goods sold in the sale. (Round answers to 3 decimal places, e. g. 5.125.)

Following are the solution to this question:

Explanation:

Calculating the cost of the product sold:

FIFO:

June 1:  23 units costing of each

Aug 27: 23 units costing of each

             13 units costing of each

Total cost of product sold

LIFO:

June 1:  23 units costing of each

Aug 27:  36 units costing of each = 540

                   Total cost of product sold

Average cost:

June 1:  23 units costing of each

Aug 27:  36 units costing of each

                  Total cost of product sold

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the first one $24,630