Answer:
Cost variance= 7 unfavorable
Explanation:
Giving the following information:
Each bat requires 1 kg of aluminum at $18 per kg and 0.25 direct labor hours at $20 per hour. Overhead is assigned at the rate of $40 per direct labor hour. Assume the actual cost to manufacture one metal bat was $40.
Estimated cost= 18 + 0.25*20 + 0.25*40= 33
Actual cost= 40
Cost variance= 7 unfavorable
Answer: SEE EXPLANATION
A. 198.27 UNITS
B. 99.14 UNITS
C. 30.76 ORDERS
D. 8.12 DAYS
E. $1,784.43
Explanation:
Given the following ;
Annual order = 6,100
Carrying cost = $9 per unit per year
Ordering cost = $29
A) EOQ =sqrt[( 2 × Annual order × (ordering cost ÷ carrying cost)]
EOQ = sqrt[2 ×6100 × (29÷9)]
EOQ = sqrt(12200 × 3.22222222)
EOQ = 198.27 units
B.) AVERAGE INVENTORY :
EOQ ÷ 2
198.27 ÷ 2 = 99.14 UNITS
C.) Optimal number of orders per year:
Demand / order per year
6,100 ÷ 198.27 = 30.76 orders
D.) Optimal number of days between two orders:
Number of working days ÷ optimal number of orders
250 ÷ 30.76 = 8.12 days.
E.) Annual cost of ordering and holding inventory:
$198.27 × $9 = $1,784.43
Answer:
Aug. 1 Cash 37,800
Common Stock 37,800 (Investment of cash for stock)
Dr.Cash 37,800
Cr. Common stock 37,800
10 Cash 17,010
Service Revenue 17,010 (Received cash for services performed)
Dr. Cash 17010
Cr. Service Revenue 17010
12 Equipment 31,500
Cash 5,040
Notes Payable 26,460 (Purchased office equipment for cash and notes payable)
Dr. Office Equipment 31500
Cr. Cash 5040
Cr. Account Payable 26460
25 Account Receivable 10,080
Service Revenue 10,080 (Billed clients for services performed)
Dr. Account Receivable 10080
Cr. Sales 10080
31 Cash 5,544
Accounts Receivable 5,544 (Receipt of cash on account)
Dr. Cash 5544
Cr. Account Receivable 5544
T account are prepared in the attached MS Excel File, Please find that.
