Answer:
$142,083
Explanation:
Current asset = Accounts receivable + Cash + Inventory + Marketable securities + Prepaid expenses = 70,256 + 16,928 + 73,062 + 36,421 + 2,512 = $199,179
Current liabilities = Accounts payable + Accrued liabilities + Notes payable (short-term) = 29,317 + 6,298 + 21,481 = $57,096
Working capital = Current assets - Current liabilities = 199,179 - 57,096 = $142,083
Answer:
The option (B) Debit Work in Process Inventory $72.000 credit Factory Wages Payable $172,000 is correct
Explanation:
Solution
Given that:
As the cost of labor was sustained as regards to processing the inventory and it was not completed, so debit the work in process of account.
There also exits a liability of paying labor charges for this it will be payable.
Hence credit factory wages payable.
For the other options they are crediting cash which is not yet paid, here the option A and E is wrong.
For option D, they are crediting inventory which in this case is not correct due to the existence of a liability for paying labor fees.
The option D is wrong, because they debited with the cost of sold goods.
Answer:
$281.67
Explanation:
Data provided in the question:
Current selling price of large TV = $380
Cost of Large TV = $310
Selling price of new TV = $340
Increase in sales = 20% = 0.20
Current sales = $150,000
Now,
Expected sales after reducing the price = Current sales + Increase in sales
= 150,000 + ( 0.20 × 150,000 )
= 150,000 + 30,000
= 180,000
Target Operating income = ( $380 - $310 ) × current sales
= $70 × 150,000
= $10,500,000
New operating cost per unit
= Target Operating income ÷ Expected sales after reducing the price
= $10,500,000 ÷ 180,000
or
New operating cost per unit = $58.33
Target Cost
= Price after reduction - New operating cost per unit
= $340 - $58.33
= $281.67
Answer:
a) 32 refrigerators
b) 28.39 approximately 29 refrigerators
Explanation:
Given:
Cost of order, S = $100
H = 20% of 500 = 100
Cost of refrigerator = $500
Annual demand, D = 500
S.d = 10
Lead time, L = 7 days.
a) To find the economic order quantity, Q_opt, let's use the formula:
The economic order quantity is 32 refrigerators.
b) The reorder point, R, is calculated as:
R = (d' * L) + ( z * s.d)
Where d' is daily demand which is calculated by dividing annual demand by 365 days.
d' = 500/365 = 1.37
At 97% service probability.
Using the excel function, NORMSINV(0.97) = 1.88.
Therefore z = 1.88
Solving for R, we have:
R = (1.37 * 7) + (1.88 * 10)
= 28.39
≈ 29
If the distributor wants a 97% service probability, the reorder point, R, should be 29 refrigerators
