Answer:
c. to avoid delays in order fulfillment due to inadequate supply
Explanation:
Stockpiling refers to keeping a large amount of inventory to have it avaiable in the future. Usually, companies do this when they think that the products may not be available to purchase it later and they decide to buy a large amount to avoid problems with the supply. According to this, the answer is that the motivation for stockpiling is to avoid delays in order fulfillment due to inadequate supply.
The other options are not right because having a large inventory is not related to be able to produce at a level rate, stockpiling can lead to unintended transformation of inventory and you might save money by ordering a large amount but you will increase your storage costs to maintain the inventory in a warehouse.
Answer:
Total cost of transferred to finished goods inventory = $ 136,500
Explanation:
To value cost of transferred finished goods, we multiply the cost per equivalent unit of production (cost per EUP) by the the number of equivalent units (EUP) for each of the cost element.
So the value of the finished inventory, is determined as follows:
Value of inventory = cost per E.U.P × number of E.U.P
Direct Material = $5.00 × 21,000 =$ 105,000
Conversion cost = $1.50 × 21,000= $31,500
Total cost of transferred to finished goods inventory =
$ 105,000 + $31,500
= $ 136,500
Product Costs include Direct materials, direct labor, and manufacturing overhead
<h3>What is product Costs?</h3>
Product Costs refers all the costs incurred in order to produce or manufacture a product. It refers to all the expenses or what is use to produce a product . Example of product costs include direct labor, direct materials,supplies, manufacturing overhead and consumable production.
Therefore Product Costs include Direct materials, direct labor, and manufacturing overhead
Learn more on cost of production from the link below.
brainly.com/question/1373878
Answer:
The correct answer is letter "B": assigning indirect resource costs to activity pools.
Explanation:
Activity-based costing or ABC is a managerial accounting method that assigns indirect costs to the products which incur the bulk of those costs. In the manufacturing sector, ABC is mainly used to help measure the true cost of output per unit.
<em>The two-step ABC approach involves assigning indirect costs of support departments -e.g., maintenance, quality control- to pools of production departments in the first step. In the second step, activity costs are combined with the indirect costs and overhead rates are added.</em>
