Abbit co uses lifo for it's inventory valuation. given the historical cost of product z is $60, the selling price of product z is $50, costs to sell product z are $6, the replacement cost for product z is $41, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory?

$41

Explanation:

The last-in, first-out inventory valuation method establishes that the inventory will be valued at the same price as the last units purchased or produced. This system considers that the last units that enter our merchandise inventory are the first ones to be sold.

In Abbit's case, the last units to enter their inventory cost $41 per unit (replacement cost). SO if we use the LIFO system then we will use the $41 per unit cost.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.