Answer:
a. 166 units should be ordererd of brackets
b. They have when they should place a new order with the supplier 10 brackets
Explanation:
According to the given data we have the following:
Annual Demand= 850 brackets
Buying cost=$10
carrying cost=13%×$10=$1.30
ordering cost per order=$21
a. To calculate how many brackets should be ordered when WCU places an order with their supplier we have to calculate the EOQ as follows:
EOQ=√<u>2AO</u>
C
EOQ=√<u>2×850×21</u>
1-30
EOQ=166 Units
166 units should be ordererd of brackets
b. To calculate how many brackets do they have when they should place a new order with the supplier we would habe to make the following calculation:
Reorder point=<u>Annual Demand </u> × lead time
working days in year
Reorder point=<u>850 × </u> 3
250
=10 brackets
They have when they should place a new order with the supplier 10 brackets
Answer:
- $250
Explanation:
The economic profit calculation is presented below:
= Total revenues - explicit cost - implicit cost
where,
Total revenues = Explicit revenue × implicit revenue
= $15 × 50 items
= $750
Explicit cost = $200
Implicit cost = $20 × 40 hours = $800
Now place these values in the formula above
So the value would be equal to
= $750 - $200 - $800
= - $250
To determine the answer to this, let us first determine the
interest using the formula:
Interest = Principal amount * Interest rate * Number of
months / 12
September to December would be 4 months, therefore:
Interest = $50,000 * 0.06 * 4/12
Interest = $1,000
Therefore the adjusting entry should be:
debit to Interest Expense of $1,000
Answer:
$13,290
Explanation:
Straight line depreciation expense = (book value of asset - salvage value ) / useful life
Book value of the asset = $48,300 - $17,720 = $30,580
($30,580 - $4,000) / 2 = $13,290
