Sales are higher in the warmer portion of the year, so April-Sept sales are usually double Oct-Mar sales. How is this calculated, if only have a total amount of sales from Jan-Aug?
In order to be able to solve the above question, we will have to use the following assumptions :
1. Month-wise sales in the winter portion are equal and month-wise sales in the warmer portion of the year are equal which means that if sale for January is 1000 $, then sale for February will also be 1000 $ and sales for any month of the warmer portion of the year will be 2000 $.
2. We will have to assume sales from Jan-Aug to be any number. I have assumed it to be 26,000 $.
Now, let monthly sale for any month in Oct-Mar be x $. Hence sales for any month between Apr-Sept becomes 2x $.
Sales for Jan-Aug = 26,000 $, i.e. (x+x+x+2x+2x+2x+2x+2x) = 26,000 $
Solving the above equation, we get x = 2,000 $.
Hence sales for Oct-Mar = 6x = 2,000 $*6 = 12,000 $
And sales in warmer portion, i.e. Apr to Sept = 2*12,000 $ = 24,000 $
Total sales for the year = 36,000 $.
Note : Students can make alternate assumptions as well.
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Montoure Company uses a perpetual inventory system. It entered
into the following calendar-year purchases and sales
transactions
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Jan.
1
Beginning inventory
600
units
@ $35 per unit
Feb.
10
Purchase
300
units
@ $32 per unit
Mar.
13
Purchase
150
units
@ $20 per unit
Mar.
15
Sales
725
units
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Aug.
21
Purchase
190
units
@ $40 per unit
Sept.
5
Purchase
540
units
@ $37...
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