I think that Spelling Corporation uses JUST-IN-TIME inventory method.
Just-in-time inventory method requires producers to forecast demand as accurately as possible to ensure that the supply is sufficient to cover demand without excesses that may result to wastage and losses. Just-in-time inventory method promotes increase in efficiency in producing products.
Other inventory methods are manual counts, perpetual inventory, first-in first-out (FIFO), and last-in first-out (LIFO).
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Answer:
The maximum Southern Tours could pay to acquire the Holiday Vacations is the present is the value of the inflows to be generated from the target company.
The present of the target business is $519,799.59
Explanation:
That amount is the maximum that should be paid for the target business,depending on negotiation skills of Southern Tours' management.
A lower price could be bargained,which better makes the investment more profitable.
Find attached spreadsheet for detailed computations.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Units produced 600 units
Direct materials $40 per unit
Direct labor $13 per unit
Variable manufacturing overhead $6 per unit
Variable selling and administrative costs $4 per unit
The variable costing method calculates the cost of goods based on direct material, direct labor, and variable manufacturing overhead.
First, we need to calculate the unitary cost of production:
unitary cost= 40 + 13 + 6= $59
Inventory= 600 units - 450 units= 150 units
Inventory cost= 150*59= $8,850
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