Answer:
He should order 681.66 gallons to minimize the cost, but he have a 500 gallon tank he can fill, so he will order 500 gallons every time, to minimize the cost.
Explanation:
According to the given data we have the following:
h = handling cost per unit = $ 9
S = Ordering cost per order = $20.5
He uses 8,500 gallons a month, therefore, the annual demand D= 8,500*12 = 102,000 gallons
.
Therefore, the optimal ordering quantity would be= [ (2*D*S) / h ]1/2
=681.66 units
He should order 681.66 gallons to minimize the cost, but he have a 500 gallon tank he can fill, so he will order 500 gallons every time, to minimize the cost.
Answer:
Depreciation for the first year is $10,000
Explanation:
Unit production method is the depreciation method which is based on the output per year of the asset. The asset is depreciated by the ratio of the output for the year to the output expected over whole useful life.
Cost of printer = $60,000
Expected output = 12,000 prints
Prints in the first year = 2,000
Depreciation for the year = Total cost x output for the year / expected output over useful life
Depreciation for the first year = $60,000 x 2,000 / 12,000
Depreciation for the first year = $60,000 x 1/6
Depreciation for the first year = $10,000
Answer: value-based pricing.
Explanation:
In its literal sense, value-based pricing means basing pricing on the advantages of the product perceived by the consumer rather than on the exact cost of product creation. A painting, for example, may be priced as much more than canvas and paint prices: in fact, the price depends a lot on who the painter is.
Answer:I would say the answer is B.
Explanation:
Answer:
$6,625
Explanation:
The computation of total Cost of WIP inventories is shown below:-
Manufacturing overhead under-applied = $1,200 × $2,135 ÷ $42,700
= $60
Total Cost of WIP inventories = Direct materials + Direct labor + Manufacturing overhead applied + Manufacturing overhead under-applied
= $2,620 + $1,810 + $2,135 + $60
= $6,625
Therefore for calculating the total Cost of WIP inventories we simply applied the above formula.
