Assuming no safety stock, the recorder point will be 500(50*10).
Safety stock is the additional quantity of a product that's saved within the warehouse to prevent an out-of-stock scenario. It serves as insurance against fluctuations in demand.
To in addition understand Z-score, believe that no safety stock is carried. In this situation, the Z-score is 0. then again, there can be sufficient inventory to satisfy demand in 50 percent of cycles.
A reorder point (ROP) is a specific stage at which your stock desires to be replenished. In other phrases, it tells you whilst to vicinity an order so that you won't run out of stock. The reorder factor system is lead time demand + safety stock. Of course, you need to determine what your lead time demand and safety stock numbers are to determine a correct calculation.
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Answer:
Wei Company
Journal Entry:
Debit Allowance for Doubtful Accounts $7,800
Credit Accounts Receivable $7,800
To write-off accounts determined to be uncollectible.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts (Balance) = $35,000
Uncollectible accounts:
Oakley Co. $1,400
Brookes Co. $6,400
Total = $7,800
b) The amount of $7,800 considered to be uncollectible is written off against the Accounts Receivable. This reduces the Accounts Receivable while correspondingly increasing the Allowance for Doubtful Accounts.
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Answer:
Net Income (Loss) = $440,000
Explanation:
Total Fixed Cost = $460000
Total Variable Cost = $11 * 100,000 unit = $1100000
Total Revenue = $20 * 100,ooo unit = $2000000
Contribution Margin = TR- TVC = ($200,000 - $1,100,000) = -$900,000
Net Income = Contribution margin - Total Fixed cost
Net Income (Loss) = $900,000 - $460,000
= $440,000
Answer:
shipment consolidation
Explanation:
The primary aim of the consolidation of shipments is to evaluate cost control and cost control. The aggregation of shipments allows individuals or businesses to save costs thereby integrating several products from different shippers into one shipment.
Therefore in the given case, since the company wants to combine 10 to 12 different orders into one shipment so that the company could save the cost
Hence, the shipment consolidation is correct
