Answer:
The EOQ is 353 units
Explanation:
The economic order quantity or EOQ is the quantoty that minimized the holding and ordering cost for invetory.
The formula for EOQ is,
EOQ = √(2*D*O) / H
Where,
- D is the annual demand in units
- O is the ordering cost per order
- H is the holding cost per unit per annum
The annual demand of oil filters by Sam is,
Annual demand = 52 * 150 = 7800 filters
The EOQ for Sam Auto Shop is,
EOQ = √(2*7800*16) / 2
EOQ = 353.27 Units rounded off to 353 units
Answer:
Amount to be borrowed $18,040
Explanation:
The computation of the amount that should be borrowed is given below:
Opening cash balance $29,500
Add Cash Receipts $98,000
Less Cash Disbursements -$122,540
Balance before adjustment $4,960
Desired ending cash balance $23,000
Amount to be borrowed $18,040
Answer:
FASB ASC 835-20-15-8
Explanation:
This section explicitly states that in order for interests to qualify for interest capitalization, the assets purchased through the loan must be getting ready for its intended use. E.g. if you want to capitalize the interests on the land, you must carry out activities necessary to prepare it for its intended use. Or if you purchase a machinery, you must be installing it in order to get it ready to produce.
Answer:
The correct answer is A
Explanation:
The Cash payments for the month of may is computed as:
Cash payment = Cash balance on May 1 + Cash received during the month - Cash balance increased
where
Cash balance on May 1 is $30,000
Cash received during the month is $47,000
Cash balance increased is $33,000
Putting the values above:
Cash payments = $30,000 + $47,000 - $33,000
= $77,000 - $33,000
= $44,000
