On february 12, 2018, meca reacquired 2 million common shares at $19 per share. on june 9, 2019, meca reacquired 3 million common shares at $14 per share. on may 25, 2020, meca sold 3 million treasury shares at $22 per share—determine cost as the weighted-average cost of treasury shares. for the previous transaction, assume meca determines the cost of treasury shares by the fifo method.

Weighted-average cost of treasury shares is 16 per share amounting 48 million dollars in total. (W-1)

Explanation:

(W-1) 16 * 3M i.e total number of share sold (W-1.1)

(W.1.1)

Calculations    

DatePurchase               Sale              Closing stock WA method

12-Feb-182M/19/38M*                                   2M/19/38M

09-Jun-193M/14/42/M                                   5M/16/80M

25-May-20                     3M/22/42/M           2M/16/32M

Date         Purchase       Sale          Closing Stock FiFo method

12-Feb-182M/19/38M*                                       2M/19/38M

09-Jun-193M/14/42/M                                     2M/19/38M

                                                                    3M/14/42/M

25-May-20                  3M/22/42/M                    2M/14/28M

*Key  2M/19/38M means 2 millions share at the rate of 19 each totaling 88 million dollars.    

answer; ///i believe that the correct answer is (a) it is the means by which a person earns money;

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.