!. without asking, you help a coworker who is burdened by multiple and fast approaching deadlines.

Wood County Hospital consumes 1,000 boxes of bandages per week. The price of bandages is $35 per box, and the hospital operates

jarptica [38.1K]

Answer:

= $367.34

Explanation:

Economic order quantity (EOQ) is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding costs are equal to the ordering costs.

EOQ = (2× Co× D)/Ch

Total relevant cost of inventory = ordering cost + Holding cost

Step 1

Total cost of inventory under EOQ

EOQ for Wood County

EOQ = 2√(2× 15 × 1000× 52)/(15%× 35)

= 545.10 units

ordering cost =( (1000× 52)/ 545.10 ) × 15 = 1,430.90

Holding cost = ( 545.10/ 2) × 15% × 35 =1,430.90

Total cost =1430.90 + 1430.90= $2,861.81

Step 2

Total cost of inventory using order size of 900 boxes

ordering cost =( (1000× 52)/900 ) × 15 = 866.66

Holding cost = (900/ 2) × 15% × 35 = 2,362.5

Total cost = 866.66 + 2,362.5 = $3,229.16

Step 3

Calculate in savings in total costs

Savings = Difference in total inventory cost of EOQ order size and 900 boxes order size :

=$3,229.16-$2,861.81

= $367.34

Savings = $367.34

3 0

3 years ago

Discussion topic

KiRa [710]

Explanation:

for me I feel that if you put something on the line maybe like money or a huge deal. Then you put them together to work on it

4 0

3 years ago

During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,234 receivable from a bankr

Natali5045456 [20]

Answer:

The answer is "No Effect ".

Explanation:

In the situation wherein the write-off would not affect the 2019 net earnings, the write-off reduces that both debt accounts as well as the benefit counter-asset for similar quantities. Whenever an expenditure was recognized, net revenues were affected, therefore, there will be nothing to write off under the allowance approach, so the response is no effect.

8 0

3 years ago

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification

Mazyrski [523]

Explanation:

(a) FIFO

In using this method we calculate cost based on the price of the earliest (first) purchased inventory date.

(b) LIFO

Here we calculate cost by using the price of the most recent (last) purchased inventory date. eg for inventory cost calulations for March 9 we use the price value of March 29

(c) weighted average

This meeting uses the average cost of the entire inventory in the month. Calculated by dividing total cost by today inventory.

(d) specific identification.

Here cost are just assigned to each individual item or batch of items in the period.

6 0

3 years ago

What is the term used to describe the reduction of the balance owed on a loan with each payment made over a period of time?

jeyben [28]

Answer:

The term used to describe the reduction of the balance owed on a loan with each payment made over a period of time is:

d. amortization.

Explanation:

Amortization of a loan is the gradual reduction of the balance owed on a loan because payments are being made over a period of time. Each payment is, therefore, a reduction of the borrowed fund. This gradual reduction through periodic payments is called amortization of the borrowed fund. Loan amortization, therefore, implies the spreading out of the loan payments over time. It is not the same as asset amortization, which is a kind of depreciation.

8 0

2 years ago