Answer:
there is persistent excess capacity.
Explanation:
Pressures for cost reduction are intense in industries where there is persistent excess capacity.
Generally, when the level of supply is relatively higher than the level of demand at a specific period of time, the price of goods and services are usually expected to fall.
<em>In this scenario, there is persistent excess capacity in the industry and as such in order to be able to keep up with sales, the company will have to reduce its selling price. This will enable the company to have competitive advantage over its rivals in the same industry. </em>
Answer:
a 1,560 units
b 780 units
c 390 units
d $18,720
e $9,360
Explanation:
Given that;
Production = 292,000
Daily demand , d = 400
Annual demand , D = 400 × 365 = 146,000
Production rate , P = 292,000 ÷ 365 = 800
Set up cost , Cs = $100
Holding cost , Ch = $24
a. What is the production order quantity
= √2 * D * Cs / CH × (p / p - d)
= √ 2 * 146,000 * 100/24 × (800/800-400)
= √1216666.6667 × 2
= √2433333.3334
= 1559.91
=1,560 units approximated.
b. What is the maximum inventory on hand
= EPQ × [ 1 - (d÷p) ]
= 1,560 × [ 1 - (400 ÷ 800) ]
= 1,560 × 0.5
= 780 units
c. What is the average inventory
= Maximum inventory ÷ 2
= 780 ÷ 2
= 390 units
d. What are the total holding costs
= EOQ/2 * Holding cost
= 1,560/2 * 24
= 780 *24
= $18,720
e. What does it cost to manage the inventory
= Holding cost * (Maximum inventory ÷ 2)
= 24 * (780 ÷ 2)
= 24 * 390
= $9,360
Dr. bills Payable 6300 Notes Payable 6,300.
The journal entry used for recording the issuance of a note for the cause of converting a current account payable could be to debit the bills payable and credit the notes payable.
A magazine entry is a record of an enterprise transaction for your business books. In double-access bookkeeping, you're making at least two journal entries for each transaction. Because a transaction can create a variety of changes in a commercial enterprise, a bookkeeper tracks them all with magazine entries.
An example of a journal is a diary in which you write about what happens to you and what you are wondering. An example of a journal is the brand new England journal of drugs, wherein new studies are posted which are relevant to docs and medicinal drugs.
Magazine entry format is the usual layout utilized in bookkeeping to maintain a record of all of the organization's business transactions and is especially based totally on the double-access bookkeeping device of accounting and guarantees that the debit aspect and credit facet are usually the same.
<em>The question is incomplete. Please read below to find the missing content.</em>
The journal entry to record the conversion of a $6,300 accounts payable to notes payable would be
A: Cash 6,300
Notes Payable 6,300
B: Notes Receivable 6,300
Notes Payable 6,300
C: Notes Payable 6,300
Cash 6,300
D: Accounts Payable 6,300
Notes Payable 6,300
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