Answer:
The company should wait 2.72 days.
Explanation:
a) Data and Calculations:
Annual demand = 15,696 units
Unit price = $52
Ordering cost = $71
Inventory holding cost = 20% of $52 = $10.40 per unit
Determined order quantity = 46 units
Number of orders per year = 92 times
Total quantity that can be ordered = 4,232 (46 * 92)
This implies that there should be inventory of 11,464 at the beginning of the period (15,696 - 4,232)
The days to wait between orders = 2.72 days (250/92)
Answer: Division of labour
Explanation: Division of labour entails dividing various tasks of making a good amongst the workers in a system. This organizing system is normally used when there is a large work force. The reason why this system is used is because it allows workers to focus on the specific process they are tasked with, allowing them to perform this task more effectively and efficiently, as long as there is mass production of the specific good. This also allows workers to specialize in their specific task, because they have gotten used to executing it.
Because an assembly line apporach is used in Alistair Fashions, the existence of mass production is likely. Each worker, or group of workers, are tasked with specific tasks such as cutting fabric, finishing sleeves, making collars, etc, allowing them to focus on the element they are tasked with and perform their tasks efficiently.
Answer:
Net income is overstated by $28,000.
Explanation:
As the company forget to make the adjustment entry it didn't recognize any expense for the expired insurance.
From September to December 31th 4 month of insurance has expired:
42,000 x 4 month/6 months = 28,000 insurance expense
as the expense weren't post the income statement is overstated along with the assets of the company as it doesn't have a prepaid amount for 42,000 but for 14,000
Answer:
(D) all of these.
Explanation:
Accounting errors do occur when making journal entries. In such a case, if one is spotted, corrections are usually done by an accounting staff who is more experience and they are done as soon as they are discovered to avoid forgetting. The errors should not be erased, however, the accountant draws a strikethrough on the erroneous entry and writes the correct one above the cancelled error. Therefore, all the choices given are correct.