Answer:
Total carrying cost is $240.
Explanation:
EOQ=√(2*D*Co)/Cn
EOQ= 400 units
Annual carrying cost= (EOQ/2)*Cn
=(400/2)*1.20
=$240
Answer:
The correct answer is:
(a) -7783
(b) 6800
(c) -983
Explanation:
According to the given values in the question:
(a)
The price variance will be:
= 
= 
=
(Favorable)
(b)
The quantity variance will be:
= 
= 
= 
=
(Unfavorable)
(c)
The cost variance will be:
= 
= 
=
(Favorable)
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Answer:
c. credit to notes payable
Explanation:
Based on the information given we were told that the Equipment which cost the amount of $16000 was purchased by paying the amount of $4000 as cash which means that if the company sign a NOTE PAYABLE for the remainder. The journal entry should include a: CREDIT TO NOTES PAYABLE