Answer:
The appropriate solution is "764".
Explanation:
Given:
Demand per month,
D = 405
or,
= 
= 
Ordering cost,
S = $15
Holding cost,
H = $0.25
As we know,
⇒ 
⇒ 
⇒ 
⇒ 
⇒ 
or,
⇒ 
Answer:
A. about 2.0%
Explanation:
The forecasted error for week 1 is 1%. The demand for week 1 is 50 while estimated demand or forecast was 49. The difference between the two values is 1. The forecasted demand for week 2 is 50 while actual demand for week 2 is 54. The difference between the forecast and actual value is 4. The difference in week 3 is 5. Mean absolute deviation is 6% which means there can be 6% standard deviation from the forecasted values.
Answer: he could benefit from adopting such a system, but should also consult with an accountant for advice about what's best.
Answer:
False
Explanation:
If the demand is uncertain, if you use average demand to calculate the economic order quantity (EOQ), you will have a high probability of a stock-out occurring.
EOQ = √(2DS / H)
where:
D = annual demand in units
S = order cost per purchase order
H = holding cost per unit, per year
If D is uncertain, then the whole calculus will either be understated or overstated.
Answer:
The journal entry to be recorded for the payment of the note on date of maturity is shown below:
Explanation:
The journal entry to be recorded for the payment of the note on date of maturity is as follows:
Notes Payable A/c..........................Dr $9,000
Interest expense A/c......................Dr $148
Cash A/c..........................................Cr $9,148
Being payment of the note payable is reported on the maturity date
As on the day of the payment, the cash is going out of the business which means assets is decreasing and any decrease in assets is credited. Therefore, the cash account is credited. And the notes payable is paid so the notes payable account is debited and interest expense account will also be debited.
Working Note:
Interest expense = $9,000 × 10% × 60/ 365
Interest expense = $148