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uranmaximum [27]
3 years ago
8

assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to

conversion costs. under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be
Business
1 answer:
ipn [44]3 years ago
7 0

Answer:

less that the units started in production period

Explanation:

Equivalent units are different from the physical units manufactured. Equivalent units are outputs expressed as percentage of costs applied and completion on them.

For Weighted Average method, equivalent units are calculated by looking at the <em>Units in Work In Process</em> and <em>Units Completed and Transferred</em>.

Therefore, for equivalent units of production with respect to conversion costs

Express the  <u>Units in Work In Process to their equivalent units</u> by multiplying by 70% (percentage of completion) and add the amount to the <u>Units Completed and Transferred</u>. The total is the equivalent units of production with respect to conversion costs.

If there is no beginning work in process inventory, the sum of the above will be less that the units started in production period

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Foods Galore is a major distributor to restaurants and other institutional food users. Foods Galore buys cereal from a manufactu
Oksanka [162]

Answer:

The appropriate solution is:

(a) 2828 cases each time

(b) $4005656.85

(c) $3609800

Explanation:

The given values are:

Annual demand,

D = 200,000 cases

Per case cost,

C = $20

Carrying host,

H = 10 \ percent\times 20

  = $2

Ordering cost,

S = $40

(a)

The economic order quantity will be:

⇒ Q^*=\sqrt{(\frac{2DS}{H} )}

On substituting the values, we get

         =\sqrt{[\frac{(2\times 200000\times 40)}{2} ]}

         =\sqrt{\frac{16000000}{2} }

         =2828

(b)

According to the question,

The annual ordering cost will be:

=  (\frac{D}{Q^*}) S

=  (\frac{200000}{2828}) 40

=  2828.85 ($)

The annual carrying cost will be:

=  (\frac{Q^*}{2})H

=  (\frac{2828}{2} )2

=  2828 ($)

The annual purchase cost will be:

=  D\times C

=  200000\times 20

=  4000000 ($)

Now,

The total inventory cost will be:

=  2828.85+2828+4000000

=  4005656.85 ($)

(c)

According to the question,

Order quantity,

Q = 10000 cases

Per case cost,

C = $18

Carrying cost,

H = 10 \ percent\times 18

   = 1.8

The annual ordering cost will be:

=  (\frac{D}{Q} )S

=  (\frac{200000}{10000} )40

=  800 ($)

The annual carrying cost will be:

=  (\frac{Q}{2} )H

=  (\frac{10000}{2} )1.8

=  9000 ($)

The annual purchase cost will be:

=  D\times C

=  200000\times 18

=  3600000

Now,

The total cost of inventory will be:

=  800+9000+3600000

=  3609800 ($)

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Answer:

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Answer:

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i believe its D but im not exactly sure

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