Answer:
$ 13.167 / unit
Explanation:
Data provided:
Beginning material cost = $ 126,000
Number of units in work in progress = 12,000 units
Material cost assigned = $ 32,000
thus,
the total material cost involved = $ 126,000 + $ 32,000 = $ 158,000
Now,
the material cost per equivalent unit = Total material cost involved / number of units
on substituting the values, we have
the material cost per equivalent unit = $ 158,000 / 12,000
or
= $ 13.167 / unit
A because you need to put people to practice
Answer:
C. DEBIT TO SALES RETURNS
D. CREDIT TO ACCOUNTS RECEIVABLE
Explanation:
The journal entry to record the May 15 transaction is shown below:
Sales return and allowance A/c Dr $40,000
To Accounts receivable $40,000
(Being sales return is recorded)
For recording the given transaction we debited the sales return and credited the account receivable. Both are recorded for $40,000
Answer:
The company should place an order every 2 days
Explanation:
The EOQ or economic order quantity is the quantity which minimizes the inventory related costs. The EOQ is calculated as follows,
EOQ = √(2 * D * O) / H
Where,
- D is the annual demand
- O is the ordering cost per order
- H is the holding cost per unit per year
EOQ = √(2 * 30000 * 20) / 40
EOQ = 173.2050808 gallons rounded off to 174 gallons
If the company orders using the EOQ, then at an annual demand of 30000 gallons, the number of times that company should order the EOQ is,
Number of orders = 30000 / 174 = 172.4137931 or 173 orders per year
If the company needs to order 173 times per year, the company should place an order every x number of days.
x = 365 / 173
x = 2.10982659 days rounded off to 2.11 days or every 2 days
