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3 years ago

A store sells 2500 packages of a dozen paper towel rolls per year. It

Business

1 answer:

Virty [35]3 years ago

8 0

Answer:

The business should order the inventory 25 times per year in a lot of 100 to minimize the inventory costs.

Explanation:

To calculate the lot size that minimizes the inventory cost, we will calculate the economic order quantity (EOQ) which is the order quantity that a business should order in each order to minimize the inventory related costs. The EOQ can be calculated using the attached formula,

EOQ = √[(2 * 2500 * 20) / 10]

EOQ = 100 packages

The lot size for each order should be 100 to minimize the inventory costs.

We can calculate the number of reorders per year by dividing the total annual demand by the EOQ.

Number of orders = 2500 / 100

Number of orders = 25 times

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Direct materials inventories are kept in pounds for Cat Company, and the total pounds needed for production in the current perio

pychu [463]

Answer:

Purchase= 14,500 pounds

Explanation:

Giving the following information:

the total pounds needed for production in the current period is 14,000. Beginning inventory= 2,000 pounds

Desired ending inventory= 2,500 pounds

To calculate the direct material purchase, we need to use the following formula:

Purchase= direct material for the period + desired ending inventory - beginning inventory

Purchase= 14,000 + 2,500 - 2,000

Purchase= 14,500 pounds

8 0

3 years ago

The Shirt Company manufactures shirts in two departments: cutting and sewing. The company allocates manufacturing overhead using

Degger [83]

Answer and Explanation:

1. The computation of predetermined OH allocation rate is shown below:-

Predetermined OH allocation Rate = Estimated overhead cost ÷ Estimated Direct labor hours

= 200,000 ÷ 100,000

= 2

2. The computation of the amount of OH allocated in June is shown below:-

Amount of OH allocated in June = Actual Direct labor hours × Overhead allocation Rate

= 15,500 × 2

= 3,100

3. The computation of predetermined OH allocation rates for each department is shown below:-

Overhead allocation Rate Estimated overhead costs ÷ Estimated Direct labor hour

For Cutting Dept = 259,600 ÷ 118,000

= 2.2

For Sewing Dept = 513,000 ÷ 190,000

= 2.7

4. The computation of the total amount of OH allocated in June is shown below:-

Amount of overhead allocated in June

= Machine hours × Predetermined OH allocation rate

For Cutting Dept = 13,000 × 2.2

= 28,600

For Sewing Dept = 7,000 × 2.7

= 18,900

5 0

3 years ago

A machine with a cost of $133,000 and accumulated depreciation of $86,500 is sold for $53,000 cash. The amount that should be re

adell [148]

Answer:

Zero, because the selling of fixed asset is reported as cash inflow under investing activity.

Explanation:

Cash flow from investing activities includes all the investments in the long term assets and sale of investments or individual assets. The investment items may include Property, Plant and Equipment.

So this means that it will not be included in the Cash from Operating Activities because it is a Cash from Investing Activities.

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3 years ago

At Onyx incorporated, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Ot

PIT_PIT [208]

Answer:

A $660,030

Explanation:

Total cost of units completed and transferred out = Units Completed and Transferred x Cost per Equivalent Unit

Therefore,

Total cost of units completed and transferred out = 117,000

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3 years ago

In the mass service and service factory quadrants of the service process matrix, the operations manager could focus on all of th

tekilochka [14]

Answer:

dez nuts

Explanation:

6 0

3 years ago