COMMERCE 1AA3 Lecture Notes - Lecture 3: Round-Off Error, Weighted Arithmetic Mean
9 Dec 2017
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With large and expensive inventory items, it is easy to track the cost of each individual item. When a unit is sold, its cost is included in the cost of goods sold. The cost of ending inventory is the sum of the cost of the individual units left in the inventory. Car dealership: a car dealership had a honda that cost ,000 and a toyota that cost ,000 as of january 1, 2008. Dodge for ,000, a buick for ,000, and a chevy for ,000; and sold the. Beginning inv = 15,000 + 17,000 = ,000. Ending inv = 12,000 + 15,000 + 16,0000 = ,000. Or ending inv = 80,000 - 37,000 = ,000 (cgafs - cogs) Costs of goods available for sale = beginning inv. Instead of a car dealership, imagine a toy store that sells hotwheels . The rst batch of 10,000 hotwheels cost ,000. The second batch of 20,000 hotwheels cost ,200.
