March_3_SI_Session - March 5, 2009 SI Session 1. Freezer...

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March 5, 2009 SI Session 1. Freezer Burn was formed in late 2004 to sell a single product, the Ice Cream Scoop, which is imported from Canada. The price of this product was a constant $16 per unit during 2004 and 2005, but due to unfavorable exchange rates the cost of this product more than doubled during 2006 and 2007. Sales for 2007 (2006) totaled 67,500 units (54,000 units). Freezer Burn uses a periodic inventory system and provides the following information about cost of goods purchased during the last two years: Opening Inventory (12/31/05) 9,000 units @ $16.00 $144,000 Purchase, April 16, 2006 27,000 units @ $18.00 $486,000 Purchase, July 28, 2006 30,000 units @ $23.00 $690,000 Purchase, March 23, 2007 36,000 units @ $28.00 $1,008,000 Purchase, September 3, 2007 42,000 units @ $35.00 $1,470,000 A physical inventory count at year-end, December 31, 2007 (2006) reveals 22,500 (12,000) units still on hand. a.
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This note was uploaded on 02/27/2012 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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March_3_SI_Session - March 5, 2009 SI Session 1. Freezer...

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