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alisha [4.7K]
3 years ago
13

Lumpkin Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purc

hases budget. Lumpkin’s policy is to maintain an ending inventory balance equal to 10 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is $40,000. Required Complete the inventory purchases budget by filling in the missing amounts.
Business
1 answer:
KATRIN_1 [288]3 years ago
8 0

Answer:

<u>February.</u>

Desired ending inventory = 10% of March Cost of goods(COGS):

= 10% * 35,000

= $3,500

Inventory needed = COGS + ending inventory

= 32,000 + 3,500

= $35,500

Beginning inventory = January ending inventory = $3,200

Required Purchases = Inventory needed - Beginning inventory

= 35,500 - 3,200

= $32,300

<u>March</u>

Desired ending inventory = 10% of April COGS:

= 10% * 40,000

= $4,000

Inventory needed:

= 35,000 + 4,000

= $39,000

Beginning inventory = February ending inventory = $3,500

Required purchases:

= 39,000 - 3,500

= $35,500

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Temporary investmentsa. are reported as current assetsb. include cash equivalentsc. do not include equity securitiesd. All of th
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Answer:

D. All of the above

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The management of supply chain inventories focuses on: No Answer Selected
Dennis_Churaev [7]

Answer: both internal and external inventories

     

Explanation: In simple words, supply chain inventories refers to the  raw material, finished goods and work in process inventories like factors that together constitutes a supply chain.

Management of supply chain refers tot he process in which the organisation tries to control and maintain the flow of inventories from on stage to the other with the ultimate objective of keeping the supply of finished goods smooth throughout the period.

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3 years ago
Maverick law office currently orders ink refills 120 units at a time. The firm estimates that carrying cost is 40% of the $10 un
dmitriy555 [2]

Answer:

Economic order quantity (EOQ)= 49 units

Explanation:

Giving the following information:

Demand= 480 units per year

Order cost= $10

Holding cost= 10*0.4= $4

<u>Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.</u>

Economic order quantity (EOQ)= √[(2*D*S)/H]

D= Demand in units

S= Order cost

H= Holding cost

Economic order quantity (EOQ)= √[(2*480*10) / 4]

Economic order quantity (EOQ)= √(2,400)

Economic order quantity (EOQ)= 49 units

8 0
3 years ago
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