Answer:
$444.42
Explanation:
For computing the saving amount, first need to calculate the economic order quantity, total cost etc
The economic order quantity is
![= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}](https://tex.z-dn.net/?f=%3D%20%5Csqrt%7B%5Cfrac%7B2%5Ctimes%20%5Ctext%7BAnnual%20demand%7D%5Ctimes%20%5Ctext%7BOrdering%20cost%7D%7D%7B%5Ctext%7BCarrying%20cost%7D%7D%7D)
where,
Annual demand is
= 774 packaging crates × 12 months
= 9,932 crates
And, the carrying cost is
= $12 × 34%
= $4.08
![= \sqrt{\frac{2\times \text{9,288}\times \text{\$29}}{\text{\$4.08}}}](https://tex.z-dn.net/?f=%3D%20%5Csqrt%7B%5Cfrac%7B2%5Ctimes%20%5Ctext%7B9%2C288%7D%5Ctimes%20%5Ctext%7B%5C%2429%7D%7D%7B%5Ctext%7B%5C%244.08%7D%7D%7D)
= 363.37 crates
Now the total cost is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,288 ÷ 363 × $29 + 363 ÷ 2 × $4.08
= $742.02 + $740.52
= $1,482.54
Now the total cost in case of 774 packing crates is
= Annual ordering cost + Annual carrying cost
= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit
= 9,288 ÷ 774 × $29 + 774 ÷ 2 × $4.08
= $348 + $1,578.96
= $1,926.96
So, the annual saving cost is
= $1,926.96 - $1,482.54
= $444.42
Answer:
Cost of goods sold is $196
Explanation:
Using FIFO inventory sold are valued at the price of the most earliest stock in inventory.
The 16 units would be valued at $11 per one while the remaining 2 units would be valued at price of the purchase made on August 3 which cost $10 each
costs of goods sold=($11*16)+($10*2)
=$176+$20=$196
The costs of goods sold would be $196 if FIFO method of inventory valuation is used
D a is the correct answer I’m pretty sure
<span>These consumers and their group leader participated in a "focus group".
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A focus group refers to a group of deliberately chosen individuals who take an interest in an arranged discourse that is planned to evoke purchaser perceptions about a specific point or territory of enthusiasm for a domain that is non-threatening and open.