My answer is 125,520 and I don't understand how to get 129300. What should I do ?
In reply to gabriela lomachinsky
Re: question 1 midterm 2223 S1 fall
Hello Gabriela,
So, the information that you have is that the closing stocks of Product A are 6 000 tonnes. Since the company is using the FIFO system, the units to be included here will necessarily be from goods produced in November/December (3 300 tonnes) and September/October (2 700 tonnes out of the 3 200 tonnes produced in that period)
The 3 300 tonnes from November/December are worth 72 600€
For the 2 700 tonnes of September/October, you can use the COGM/tonne -> 21€ * 2 700 = 56 700€
72 600€ + 56 700€ = 129 300€
Good study!
So, the information that you have is that the closing stocks of Product A are 6 000 tonnes. Since the company is using the FIFO system, the units to be included here will necessarily be from goods produced in November/December (3 300 tonnes) and September/October (2 700 tonnes out of the 3 200 tonnes produced in that period)
The 3 300 tonnes from November/December are worth 72 600€
For the 2 700 tonnes of September/October, you can use the COGM/tonne -> 21€ * 2 700 = 56 700€
72 600€ + 56 700€ = 129 300€
Good study!