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zvonat [6]
2 years ago
9

Cooper Company has an average demand of 50 units per day. Lead time from the supplier averages 20 days. The combined standard de

viation of demand during lead time is 20 units. The item costs $75 and the inventory carrying cost is 24%. Answers to the next two questions are based on this information. How much is the annual inventory carrying cost of the safety stock because of this decision
Business
1 answer:
Mashutka [201]2 years ago
5 0

Answer:

The annual inventory carrying cost of the safety stock = $594

Explanation:

Given that:

The average daily demand (d) = 50 units / day

The lead time (LT) = 20 days

The combined standard deviation of demand lead time = 20 units.

The item cost  = $75

The inventory carrying cost = 24% of the item cost

i.e. (24/100) × 75 = $18 of the item cost

Let assume that the management of the company wants to offer a service level of 95%.

Then the z-value that relates to 95% confidence interval level = 1.65

So; the safety stock relating to the 95% service level = z \times \sigma_{dlT}

= 1.65 × 20

= 33 units

Now:

The annual inventory carrying cost of the safety stock = Safety stock × Inventory carrying cost.

= 33 × $18

= $594

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Garland Company received proceeds of $235000 on 10-year, 6% bonds issued on January 1, 2018. The bonds had a face value of $2500
Lerok [7]

Answer:

$238000

Explanation:

The computation of the carrying value of the bond is shown below:

Given that

Face Value of Bonds = $250,000

Proceeds from issuance of bonds = $235,000

Before that we need to compute the following things

Now

Discount on Bonds Payable = Face Value of Bonds - Proceeds from issuance of bonds

= $250,000 - $235,000

= $15,000

Life of Bonds = 10 years

Now

Discount on Bonds amortized annually = Discount on Bonds Payable ÷ Life of Bonds

= $15,000 ÷ 10

= $1,500

Now

Discount amortized is

= Discount on Bonds amortized annually × expired life

= $1,500 × 2

= $3,000

Finally

Carrying Value of Bonds = Issue Price + Discount amortized

= $235,000 + $3.000

= $238,000

5 0
3 years ago
Ace Bonding Company purchased merchandise inventory on account. The inventory costs $3,700 and is expected to sell for $6,400. H
snow_lady [41]

Answer:

Ace records the purchase:

Inventory 3,700 Accounts payable 3,700

Explanation:

Ace Bonding Company purchased merchandise inventory on account. The inventory costs $3,700.

Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. At that time of purchasing, the company has not sold the merchandise yet. The entry records the purchase:

Debit Inventory $3,700

Credit Accounts payable $3,700

7 0
3 years ago
In product development, what are "specifications"?
mario62 [17]

Answer:

the answer is A. Statements of what the product will be like

Explanation:

hope this helps <3 xoxo :)

5 0
3 years ago
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Which is greater: 1 hour or 60 minutes?
musickatia [10]

Answer:

both r the same

Explanation:

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2 years ago
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Coffee Bean Co. Competes in the crowded coffee bean product category and sells its products in grocery stores and other stores s
Naddika [18.5K]

Answer:

"Commodity-like" is the appropriate response.

Explanation:

  • A commodity seems to be a simple item that would be compatible with other commodities of almost a similar sort used in exchange.
  • Commodities have been used another very commonly in the manufacture of other products or services as inputs. The consistency of the product in question may vary marginally, but it is generally standardized across suppliers.
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3 years ago
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