Answer:
Company A
The number of items that should be produced in each run to minimize total costs of production and storage is:
= 22,000 units
Explanation:
a) Data and Calculations:
Total annual demand = 550,000 units
Cost per production run = $330
Cost per unit = $5
Storage (holding) cost per item = $0.75
The number of items that should be produced in each run to minimize total costs of production and storage is given by Economic Order Quantity (EOQ) formula
= square root of (2 * 550,000 * $330)/$0.75
= square root of $363,000,000/$0.75
= square root of 484,000,000
= 22,000 units
Answer:
The overapplied factory overhead results in more expense. The overapplied factory overhead results in increase in cost of good sold. Over-application means that actual overhead are less than reported expense. At the end of the accounting period the company will pass following accounting entry to adjust over application
Debit FOH account 400
Credit Cost of Good Sold 400
So after this adjustment the net income will increase by 400 dollars.
Answer:
I answered this in your other question However... Different countries have different advertising/promotional laws. Plus you have no target market if you're creating a promotional message to use for all countries. Also, assuming if your promotional message inspired, say a person in Africa, a person in Russia, a person in China, and a person in Japan bought a product from your promotion, you would have to ship to all of those countries with extreme shipping rates.
Answer:
Explanation:
For computing the cost of inventorying, we have to apply the formula which is shown below:
= Total costs ÷ Number of items
1. Cost of inventorying = Total costs ÷ Number of items
= $125 ÷ 100 items
= $1.25
Total cost = $100 + $25 = $125
2. Cost of inventorying = Total costs ÷ Number of items
= $150 ÷ 150 items
= $1
Total cost = $100 + $25 + $25 = $150
3. Cost of inventorying = Total costs ÷ Number of items
= $175 ÷ 160 items
= $1.10
Total cost = $100 + $25 + $25 + $25 = $175
$25 is the each worker pay
To minimize the cost we required two workers as the cost of inventorying is lesser than other two.
