Answer:
Inventory turnover in days = 43.59 days
Inventory turnover (No of times)= 8.37 times
Explanation:
<em>Inventory turnover days is the average length of time it takes a business to sell its inventory before replacement.</em>
Inventory turnover in days
= Average inventory /Cost of goods sold × 365 days
<em>Average inventory = (Opening Inventory + closing inventory)/2</em>
<em>Average inventory </em>
= (21,000 + 22,000)/2
= 21,500
<em>Inventory turnover in days</em>
(21,500/180,600) × 365 days
=43.597 days
Inventory turnover (No of times )
= Cost of goods sold/Average inventory
= 180,600/21,500
= 8.37 times
No. Day trading refers to trading positions that are opened and closed the same day.
Answer:
(a) It affects expense account.
(b) It affects Revenue account.
(c) It affects expense account.
(d) It affects Expense account.
(e) It affects Dividend account.
(f) It affects Revenue account.
(g) It affects Expense account.
(h) It does not affect stockholders’ equity because purchase of equipment for cash doesn't affect stockholders’ equity.
(i) It affects Common stock account.
Answer:
1. Annual demand ( D) = 100,000 bags
Ordering cost per order (Co) = $15
Holding cost per item per annum (H) = 15% x $2 = $0.30
EOQ = √<u>2DCo</u>
H
EOQ = √<u>2 x 100,000 x $15</u>
0.30
EOQ = 3,162 units
2. Maximum inventory
= Safety stock + EOQ
= 1,500 + 3,162
= 4,662 units
3. Average inventory
= EOQ/2
= <u>3,162</u>
2
= 1,581 units
4. Number of order
= <u>Annual demand</u>
EOQ
= <u>100,000</u>
3,162
= 32 times
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.
Maximum inventory is the aggregate of safety stock and EOQ.
Average inventory is economic order quantity divided by 2
Number of order is the ratio of annual demand to economic order quantity.