Using the attached Figure 3.5 and Table 3.3 (separate pdf),

a. What is the per unit inventory cost for Project JJ using the LIFO Policy? 

b. What does it mean if the TU(t) curve crosses over the TS(t) curve at any time? 

 

Transcribed Image Text:

TABLE 3.3 Historical and Forecast Unit Costs for Quantity and Period Period * -3 -2 -1 0 1 2 3 4 5 6 1-2 10.00 10.70 11.10 11.25 12.00 12.95 12.97 13.52 14.10 14.69 15.31 Quantity 3-4 Historical Costs 7.00 7.50 7.80 7.90 8.40 8.00 8.60 8.95 9.00 9.65 5-6 Forecast Costs 8.73 9.10 9.49 9.89 10.32 10.75 10.01 10.44 10.89 11.36 11.84 12.35 7-8 6.50 7.00 7.20 7.30 7.85 8.12 8.46 8.83 9.20 9.60 10.01 TABLE 3.3 Historical and Forecast Unit Costs for Quantity and Period Period * -3 -2 -1 0 1 2 3 4 5 6 1-2 10.00 10.70 11.10 11.25 12.00 12.95 12.97 13.52 14.10 14.69 15.31 Quantity 3-4 Historical Costs 7.00 7.50 7.80 7.90 8.40 8.00 8.60 8.95 9.00 9.65 5-6 Forecast Costs 8.73 9.10 9.49 9.89 10.32 10.75 10.01 10.44 10.89 11.36 11.84 12.35 7-8 6.50 7.00 7.20 7.30 7.85 8.12 8.46 8.83 9.20 9.60 10.01

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a The per unit inventory cost for Project JJ using the LIFO Policy is 895 b If the TUt curve crosses ... View the full answer