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3 years ago

Operating income can differ materially between the results for the weighted-average and FIFO methods when:

Business

2 answers:

gregori [183]3 years ago

5 0

Answer:

d) Both of these answers are correct.

Explanation:

Base on the scenario been described in the question, Operating income can differ materially between the results for the weighted-average and FIFO methods when the physical inventory levels of work in process are large relative to the total number of units transferred out and direct materials or conversion costs per unit vary significantly from period to period.

Scrat [10]3 years ago

5 0

Answer:

The answer is d .Both of the options a and b are correct

When the direct materials or conversion costs per unit vary significantly from period to period and the physical inventory levels of work in process are large relative to the total number of units transferred out using both methods ,the operating income will vary

Explanation:

Weighted average method Calculates cost per equivalent unit of all work done to date not considering the accounting period and assigns this cost to equivalent units completed and transferred out of the process and to equivalent units in ending work-in-process inventory.

Fifo ..First in first out

Assigns the cost of equivalent units worked on during the current period first to complete beginning inventory, next to start and complete new units, and finally to units in ending work-in-process inventory.

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3 years ago

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Which leadership function involves regulating the time spent on each topic? Select all that apply.

Allisa [31]

Making and keeping an agenda.

An agenda is a list or schedule of tasks and helps you focus on what needs to be accomplished and in what time frames.

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3 years ago

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True or false? until recently, congress provided subsidies to tobacco growers and has been very reluctant to pass legislation op

Vera_Pavlovna [14]

That is "True".

For around seventy years, going back to the Great Depression, the legislature forced production constrains on individual tobacco cultivates yet ensured a artificially high cost for the harvest. The strategy kept up order in the tobacco developing business for a considerable length of time and kept numerous little agriculturists alive. At the point when Congress voted a ballot in late 2004 to take out the government's contribution in the business, it was seen as an approach to standardize the cost of tobacco and make U.S. tobacco cultivating more focused over the long haul.

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3 years ago

Dave has $100,000 to invest in 10 mutual fund alternatives with the following restrictions. For diversification, no more than $2

Over [174]

Answer:

Check the explanation

Explanation:

Let the binary variables be: x1,x2,x3.....x10. If x1=0, no amount is invested in fund 1 and if it is 1 it means that an amount is invested. Let y1,y2.....y 10 be the variables for the amount invested.

Kindly check the first attached image for the table.

The objective is to maximize the return. Hence our objective function is: 6.7%*y1+7.65%*y2+7.55%*y3+7.45%*y4+7.5%*y5+6.45%*y6+7.05%*y7+6.9%*y8+5.2%*y9+5.9%*y10. This has to be maximized.

Constraints:

(i) y1,y2.....y10<=25,000 (no more than $25,000 can be invested in any one fund)

(ii) If x1=1, y1>=10,000, 0. This what if formula will be applicable for all the variables. (If a fund is chosen for investment, then at least $10,000 will be invested in it).

(iii) x1+x2+x3+x4<=2 (No more than two of the funds can be pure growth funds)

(iv) y9+y10>=y1+y2+y3+y4 (at least as much as the amount invested in pure amount invested in pure bond funds must be at least as much as the amount invested in pure growth funds)

(v) all x's are binary and all y's>=0. (vi) y1+y2+y3+y4....y10 = 100,000 (amount to be invested)

Solving in excel using the solver function the following solution is obtained:

Kindly check the second attached image for the table.

Thus the maximum return = $7056.25

Amount invested in different funds are:

Kindly check the Third attached image for the table.

4 0

4 years ago

A small manufacturing firm uses roughly 3400 pounds of chemical dye a year. Currently the firm purchases 300 pounds per order an

kupik [55]

Answer:

Consider the following calculations

Explanation:

First calculate the Economic Order Quantity (EOQ) ignoring the discount.

Economic Order Quantity (EOQ)= √ (2DS/H)

D- Demand per year= 3400 pounds

S- Ordering cost per year= $100

Per unit cost= $3 per pound

H- Holding (carrying) cost per unit per year=$0.51( 17% of purchase price)

So by applying the above formula, we get the following answer:

EOQ= SQRT (2*3400*100/0.51)= 1154.70 units

Economic Order Quantity (EOQ)= 1154 units

Discounted Order Quantity (DOQ) = 1500 units

Annual Orders under EOQ = Demand ÷ EOQ = 3400 ÷ 1154 = 3 orders

Annual Orders under DOQ = Demand ÷ DOQ = 3400÷ 1500 = 2.40 or 3 orders

Average Inventory under EOQ = EOQ ÷ 3 = 1154 ÷ 3 = 384.90 units

Average Inventory under DOQ = DOQ ÷ 3 = 1500 ÷ 3 = 500 units

A-Saving from reduction in Price

= Demand × Full Price × Discount Rate

= 3400× 3 × 0.33 = $ 3366

B-Saving from reduction in orders

= Orders reduced × Order Cost

= (3− 3) × 100 = 0

C-Increase in holding cost

= Increase in average inventory × holding cost per unit per annum

Holding cost is 17% of purchase price

So for 500 units it is=$170 (17% of $2 per pound)

For 384.90 units= $196.30 (17% of $3 per pound)

Increase in holding cost= 170-196.30= $-26.30

Net savings on discount order quantity = A + B − C = 3366 + 0 – (-26.30) = $3392.30

Since the net effect on income is positive, the store should place the order for quantity discount.

6 0

3 years ago