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emmainna [20.7K]
3 years ago
7

Durango Co. desires to maintain an ending inventory equal to 10% of next month's cost of budgeted sales. Assume that Durango Co.

maintained this level of ending inventory for the month of September. The cost of budgeted sales for October is $100,000 and the cost of budgeted sales for November is $200,000. Calculate required purchases for the month of October.
Business
1 answer:
lakkis [162]3 years ago
8 0

Answer:

Required purchase for October = $110,000

Explanation:

Given:

Ending inventory = 10% of next month's budgeted sales

Budgeted sales for October = $100,000

Budgeted sales for November = $200,000

Purchase for the month of October  = ?

Calculation of Required purchase for the month of October :

Particular                                                                      Amount

Budgeted sales of October                                        $100,000

<u>Add</u><u>: Desired ending inventory($200,000 x 10%)      $20,000 </u>

<u>Total Inventory needed                                         $120,000 </u>

<u>Less</u><u>: Beginning inventory($100,000 x 10%)        $10,000</u>    

<u>Required purchase for October                                 $110,000 </u>

<u></u>

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Answer:

$13400

Explanation:

<u>Workings</u>

Unit of of production

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Total cost - 31.8

Cost per year = 31.8*14000

445,200

Cost of buying = 25.50

Allocated general overhead - 7.20

Total cost =32.7

Annual cost 32.7*14000 = 457800

Annual opportunity cost of internal production = 26,000

The overall advantage of buying = 26000 - (457800-445200)

= 13,400

6 0
4 years ago
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Horses cost $10, pigs cost $3, and rabbits are only $0.50. A farmer buys 100 animals for $100, How many of each animal did he bu
VMariaS [17]

Answer:

The correct answer to the following question is that there are 5 horses, 1 pig and 94 rabbits.

Explanation:

Given information -

Horses cost = $10

Pigs = $3

Rabbits = $.50

There are total of 100 animals, which are bought for $100 in total.

So by using simple equations we can solve this problem,

where let number of horses be x

number of pigs be y

number of rabbits be z

so the first equation that we can make by using given information is -

x + y + z = 100 (total of 100 animals bought )  _ _ equation 1

10 x + 3 y + .5 z = $100 _ _ equation 2

Now multiplying equation 2 by 2 and then subtract that from equation 1

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Now subtracting equation 3 from 1 -

20 x + 6 y + z = $200

          -

x + y + z = 100

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Here 19 x and 5 y have to be a multiple of 5 ( where x and y are integers ), therefore the only possible value of x here can be 5 and if the value of x =5 , then the value of y will be equal to 1,

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Now putting the value of x and y in equation 2,

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4 0
3 years ago
What is the study of the health and well-being of the enviornment on the employee
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