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Ray Of Light [21]
3 years ago
15

Imagine that a major car company has been able to plan production to coincide with sales forecasts. As new inventory comes into

the showroom, customers purchase it, and there is no unsold inventory and no unfilled orders. How can we best describe this phenomenon?
Business
1 answer:
inessss [21]3 years ago
5 0

Answer:

JIT production and JIT purchasing

Explanation:

JIT production and JIT purchasing under this process entity does not have extra material in stores and extra inventory produced.

as per the just in time

there is no benefit of holding inventory at stores

producing extra units does not add value they are useless until they are sold.

According to just in time inventory should be purchased when order has been placed and production process should start in order to meet the customers orders.

there are some conditions for this process

there should be very system to meet the order  on time

there should be relaible production system units produced should not be poor quality goods

there should reliable suppliers to supply the material on time to meet the customers orders and avoid the stock out costs.

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At the end of 2003, Ritzcar Co. fails to accrue sales commissions earned during 2003, but paid in 2004. The error is not repeate
Mandarinka [93]

Answer:

The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.

The error does not have effect on the 2004 ending retained earnings balance.

Explanation:

Let the amount of the commission expense be xxxx.

At the end of 2003, the journal entries should have been as follows:

Debit Commission expense for xxxx

Credie Commission payable for xxxx

Also, we have:

Working capital = Current assets – Current liabilities ………… (1)

From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.

When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.

4 0
2 years ago
An aging of Bicycle Company's accounts receivable indicates that $20,000 is estimated to be uncollectible. If Allowance for Doub
V125BC [204]

Answer:

The adjustment to record bad debts for the period will be:

Debit Bad debt expense ($20,000 - $3,000)                    $17,000

Credit Allowance for doubtful accounts                            $17,000

<em>(Bad debt expense required)</em>

Explanation:

Bicylce Company adopts the aging of accounts receivable method. The aging of accounts receivable is a criterion for apportioning the balance in the accounts receivable into different buckets (aging), for example: Not due, 1 - 30 days, 30 - 60 days, over 60 days, based on historical information and assigning a credit loss percentage to each bucket.

Since the Allowance for Doubtful Accounts has a $3,000 credit, to calculate the required bad debt expense, we need to back out this amount from the amount that is deemed uncollectible, that is $20,000 - $3,000 = $17,000.

4 0
3 years ago
The Carlberg Company has two manufacturing departments, assembly and painting. The assembly department started 10,000 units duri
alexandr402 [8]

Answer:

Equivalent units

Materials              10,200

Covnersion Cost   9, 100

Explanation:

\left[\begin{array}{cccc}&$Physical Units&$Materials&$Conversion\\$Beginning&2,000&0.6&0.4\\$Transferred out&9,000&&\\$Ending&3,000&0.8&0.3\\$Equivalent Units&&10,200&9,100\\\end{array}\right]

The equivalent units will be calcualte as follow:

 transferred out

 ending x completion

<u>  (beginning x completion)  </u>

Equivalent units

<u>Materials</u>

9,000 + 3,000 x 80% - 2,000 x 60% = 10,200

<u>Conversion Cost</u>

9,000 + 3,000 x 30% - 2,000 x 40% = 9,100

5 0
3 years ago
Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option b
Hoochie [10]

Answer :

Net present value = -$30,284.90

Net present value = -$15,699.78

Explanation :

As per the data given in the question,

Particulars                 Amount     Factor              Purchase

Cost of new vehicle -$33,500    1                    -$33,500.00

Annual Maintenance -$1,200   3.605             -$4,326.00

Less : Salvage value    $13,300 0.567              $7,541.10

Net Present value                                             -$30,284.90

Particulars                  Amount       Factor           Purchase

Cost of new vehicle       $0                1                      $-

Annual Maintenance -$4,355       3.605          -$15,699.78

Less : Salvage value        $0             0.567              $-

Net Present value                                               -$15,699.78

We simply multiplied the amount with the factor so that the purchase amount could come

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3 years ago
One reason some manufacturing companies have moved production from overseas locations back to the United States is an increasing
Liula [17]

Answer:

The key economic idea being exemplified is c) People are rational

Explanation:

The economists’ assumption is that firms and consumers utilize all available information to attain their goals and weigh all costs and benefits of each action taken. Moreover, firms and consumers only choose an action if the benefits exceeds the costs.  Therefore, the action of manufacturing firms to move their operations from overseas back to the US due to the increased preference for US manufactured goods exemplifies that consumers and firms rely on all available information when pursuing their goals.  

4 0
3 years ago
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