Answer:
Cost of Goods sold for Planner:
= Goods sold * Cost to produce
= 10,000 * 82
= $820,000
Cost of Goods sold for Schedule:
= Goods sold * Cost of acquisition
= 7,000 * 94
= $658,000
Answer:
$59,400
Explanation:
Operating income = Contribution - Fixed Costs
therefore,
<u>At the activity of 28,000 units results will be :</u>
Contribution (28,000 units x $3.50) $98,000
Less Fixed Costs ($38,600)
Operating Income $59,400
Thus,
The operating income expected if the company produces and sells 28,000 units is $59,400
Answer:
The company should place an order every 2 days
Explanation:
The EOQ or economic order quantity is the quantity which minimizes the inventory related costs. The EOQ is calculated as follows,
EOQ = √(2 * D * O) / H
Where,
- D is the annual demand
- O is the ordering cost per order
- H is the holding cost per unit per year
EOQ = √(2 * 30000 * 20) / 40
EOQ = 173.2050808 gallons rounded off to 174 gallons
If the company orders using the EOQ, then at an annual demand of 30000 gallons, the number of times that company should order the EOQ is,
Number of orders = 30000 / 174 = 172.4137931 or 173 orders per year
If the company needs to order 173 times per year, the company should place an order every x number of days.
x = 365 / 173
x = 2.10982659 days rounded off to 2.11 days or every 2 days
Answer:
False
Explanation:
The basic cost flow model is used for inventory, and the formula is:
(Starting balance)+(Incoming Cost)-(Outgoing cost) = Ending balance
Starting balance = represents cost of resources that have been used so far.
Incoming cost = represents cost from previous periods.
Outgoing cost = represents cost attributed to goods ready for sale.
Ending balance = is the cost at the end of period under consideration.
So as can be seen in the formula, basic cost flow also involves costs. So the statement is False
