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anygoal [31]
2 years ago
9

Demand for walnut fudge ice cream at the Sweet Cream Dairy averages 5.9 gallons per day. The dairy uses a continuous review (reo

rder point) policy with a two-day lead time. The variance of daily demand during is 2.9.
Assuming a normal distribution and a desired service level of 93%, what is the optimal reorder point and safety stock?
Business
1 answer:
RSB [31]2 years ago
7 0

The optimal reorder point of Sweet Cream Dairy is 27.71 or 28 (rounded off)  and Safety stock is 15. 91  or 16 gallons (rounded off)

Explanation:

the reorder point is to multiply the average daily usage rate for an inventory item by the lead time in days to replenish it.

The safety stock formula with standard deviation is more complicated but also more accurate.

Safety stock = desired service level × standard deviation of lead time × demand average

Safety stock = ( 93÷100) ×  2.9 × 5.9 =  15. 91  or 16 gallons (rounded off)  

Safety stock = ( 93÷100) ×  2.9 × 5.9 =  15. 91  or 16 gallons (rounded off)

Reorder Point = (Average Daily Usage x Average Lead Time in Days) + Safety Stock  

= (5.9 x 2) + 15. 91 = 11.8 + 15.91 = 27.71 or 28 (rounded off)

= (5.9 x 2) + 15. 91 = 11.8 + 15.91 = 27.71 or 28 (rounded off)

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5 0
2 years ago
For the past year, Momsen, Ltd., had sales of $46,382, interest expense of $3,854, cost of goods sold of $16,659, selling and ad
Ivenika [448]

Answer:

Net income= $11,412.2

Explanation:

Giving the following information:

sales of $46,382

interest expense of $3,854

cost of goods sold of $16,659

selling and administrative expense of $11,766

depreciation of $6,415

t=0.35

We need to use the following formula:

Net income= (sales - COGS - selling and administrative expense - interest expense - depreciation) - tax + depreciation

First, we deduct Depreciation to decrease the tax base, but because it is not an actual payment, we have to sum it after tax.

Sales= 46,382

COGS= (16,659)

Gross profit= 29,723

Selling and administrative expense= (11,766)

Interest=(3,854)

Depreciation= (6,415)

EBT= 7,688

Tax= (7,688*0.35)= (2,690.8)

Depreciation= 6,415

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6 0
3 years ago
g At the beginning of the month, the Forming Department of Martin Manufacturing had 22,000 units in inventory, 30% complete as t
Liula [17]

Answer:

62,000 units

Explanation:

Calculation to determine how many units did the Forming Department start and complete in the current month

Total units completed and transferred 84,000 units

Less Inventory at the beginning of this month 22,000 units

Units Forming Department started and completed in the current month 62,000 units

(84,000 units-22,000 units)

Therefore The number of units that the Forming Department started and completed in the current month is 62,000 units

7 0
3 years ago
Department 1 completed work on 500 units and transferred them to Department 2. The cost of the units was​ $750. What is the jour
vaieri [72.5K]

Answer:

                                                                     Dr.       Cr.

Work-in-Process Inventory - Dept. 2:        750

Work-in-Process Inventory—Dept. 1:                    750

Explanation:

All the cost incurred in the department 1 was added in the work in process account of this department. While transferring the product from one department to other the cost of work in process will also be transferred to next department to accumulate all costs associated with the product. At the end the finished goods will be carrying all the cost incurred to manufacture that product. Due debit nature of WIP account the cost in transferred to next department's account by just crediting the WIP of department 1 and debiting WIP of department 2. WIP of Department 1 will be 0 and WIP of department 2 will be $750.

8 0
2 years ago
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Norma-Jean [14]
The correct answer in the blank is the edge cities. The edge cities describe the following statement above because building like malls, hotels, parks and even residential areas that are found near to the major high ways intersections are called to be it.
5 0
3 years ago
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