Answer:
annual demand = 380 * 12 = 4,560
order cost = $8.50
annual holding cost = $0.45 * 25% = $0.1125
EOQ = √[(2 * 4,560 * $8.50) / $0.1125] = 830.10 ≈ 830 units
time between placement of orders = 830 units / 4,560 units = 0.182 years = 2.18 months
reorder point = 4,560 units * 2/12 (lead time) = 760 units
A new order should be placed when the inventory level is 760 units
d. by dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base
Answer:
[(Accounts receivable at the beginning of the year + $138,000) - $144,000] - cash realizable value at the beginning of the year
Explanation: The question is incomplete but just apply the missing figures: [(Accounts receivable at the beginning of the year + Sales on account - Collections on account - write off) - bad debt] - cash realizable value at the beginning of the year
[(Accounts receivable at the beginning of the year + $390,000 - $230,000 - $22,000) - $144,000] - cash realizable value at the beginning of the year
Answer:
Next year
Explanation:
Since in the question, it is given that the only the corporate shareholder sells all of its shares to Bill Brady who is an individual and on the current year too early filed the S corporation status
Now the TooEarly will be eligible for the next year as the TooEarly has a non-qualified shareholder but the S corporation treatment is available for the following year
