Suppose that in Problem 13 a Type 2 service objective of 95 percent is substituted for the stock-out cost of$ 12.80. Find the re
sulting values of Q and R. Also, what is the imputed cost of shortage for this case?
1 answer:
Answer:
(Q, R) = (1555, 1400)
shortage imputed = $0.388
Explanation:
Lot size-reorder point system is one of the multi period models. This system is denoted by decision variables (Q, R). This multi period model is implemented when there is uncertain demand in inventory control.
nevertheless, in the simple EOQ model, demand is known and fixed. But when the demand is random, these lot size-reorder point (Q, R) systems allow random demand.
There are two decision variables in a (Q, R) system:
Order quantity, Q and
Reorder point, R
Additional steps are attached as files
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Answer:
Please see the attached Snapshot for a schedule showing service revenue receivable and below are the journal entries for the year 2013, 2014 and 2015 on Income Taxes.
Explanation:
1. 2013 Journal Entry
Alsup Consulting
Dated: December 31, 2013
Debit: Tax Expense $134,000
Debit: Deferred Tax Liability $4,000
Credit: Income Tax Payable $138,000
<em>To record Income Tax Payable.</em>
2. 2014 Journal Entry
Alsup Consulting
Dated: December 31, 2014
Debit: Tax Expense $108,000
Credit: Income Tax Payable $100,000
Credit: Deferred Tax Liability $8,000
<em>To record Income Tax Payable.</em>
3. 2015 Journal Entry
Alsup Consulting
Dated: December 31, 2015
Debit: Tax Expense $114,000
Debit: Deferred Tax Liability $10,000
Credit: Income Tax Payable $124,000
<em>To record Income Tax Payable.</em>
