HOW DID THEY GET THIS ANSWER?
PHYSICAL INVENTORY OF PICTURE FRAME WAS TAKEN AT TARGET THEY FOUND THERE WAS 700 WAS REMAINING WHAT WAS THE INVENTORY PRICING?
IT GOES ON TO GIVE THE STRATEGY
JAN 1 BEGIN INVEN. 400 UNITS @ $5.00 = $2000.00
APRIL 9 PURCHASE 200 UNITS @ $6.00 = $1200.00
JULY 19 PURCHASE 500 UNITS @ $7.00 =
$3,500
OCT 15 PURCHASE 300 UNITS @ 8.00 =
$2400.00
STEP 1:200 UNITS @ $9.00 FROM DEC.8
300 UNITS @ $8.00 FROM OCT.5
200 UNITS @ $7.00 FROM JULY 19
---
700 INVENTORY DEC.31
STEP 2&3:UNITS COST/UNITS TOTAL
200 $9.00 $1800.00
300 $8.00 $2,400
200 $7.00 $1,400
_______
INVENTORY BALANCE $5600.00
I DON'T UNDERSTAND IN STEP 1 WHERE DID THEY GET 200 UNITS @ $7.OO FOR JULY 19TH.
To understand how they got the answer of "200 units @ $7.00" for July 19th, let's go through the given information step by step:
1. The physical inventory count at Target revealed that there were 700 picture frames remaining.
2. The inventory progressions show the number of units and the purchase prices for different dates throughout the year.
3. The strategy provides us with the following information:
- January 1: Beginning inventory of 400 units @ $5.00 each, totaling $2000.00.
- April 9: Purchase of 200 units @ $6.00 each, totaling $1200.00.
- July 19: No specific information about a purchase on this date is given.
4. The next available information for a purchase date after July 19th is on October 15th.
Now, to determine the units and cost for the missing date (July 19th), we can use the following logic:
- The total amount of inventory on December 31st is composed of different purchases made throughout the year and the inventory level given at Target (which is 700 units).
- To find the missing units and cost on July 19th, we need to subtract the units and cost of the other purchases from the total inventory on December 31st.
Let's calculate the missing units and cost for July 19th (Step 1):
Total inventory on December 31st (700 units) =
200 units @ $9.00 + 300 units @ $8.00 + 200 units @ $7.00
Simplifying the equation:
700 units = 200 units @ $9.00 + 300 units @ $8.00 + 200 units @ $7.00
We can rearrange the equation to find the missing value:
200 units @ $7.00 = 700 units - (200 units @ $9.00 + 300 units @ $8.00)
Calculating the missing value:
200 units @ $7.00 = 700 units - $1800.00 - $2400.00
200 units @ $7.00 = 700 units - $4200.00
200 units @ $7.00 = -$3500.00
The equation results in a negative value, which suggests that the given information is incorrect or incomplete. Based on the given data, we cannot determine the units and cost for July 19th, as it is missing in the provided strategy.