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Answer:
when sea transportation is used:
safety stock = Z-score x √lead time x standard deviation of demand
- Z-score for 99% = 2.58
- lead time = 36 days
- standard deviation of demand = 4,000 units
safety stock = 2.58 x √36 x 4,000 units = 61,920 units
reorder point = lead time demand + safety stock
- lead time demand = 36 days x 5,000 units = 180,000 units
- safety stock = 61,920
reorder point = 180,000 units + 61,920 units = 241,920 units
when air transportation is used:
safety stock = Z-score x √lead time x standard deviation of demand
- Z-score for 99% = 2.58
- lead time = 4 days
- standard deviation of demand = 4,000 units
safety stock = 2.58 x √4 x 4,000 units = 20,640 units
reorder point = lead time demand + safety stock
- lead time demand = 4 days x 5,000 units = 20,000 units
- safety stock = 20,640
reorder point = 20,000 units + 20,640 units = 40,640 units
Answer and Explanation:
The journal entry is shown below:
Overhead $4,700
Cost of goods sold $4,700
(Being overapplied overhead is closed)
Here the overhead is debited as it increased the expenses and credited the cost of goods sold as it decreased the expense
Answer:
The rent expense to be recorded on November 30 will be $15400.
Explanation:
The accrual principle in the accounting states that the revenues and expenses for a period should be matched and recorded in their respective periods. Following the principle, we should record the expenses in the period to which they belong. Thus, the rent that is paid in advance is an asset and it will be expensed out as it is consumed.
The rent of $16800 is paid for the period from January to December.
The rent to be recorded as rent expense on 30 November will be for 11 months from January to November.
Rent expense = 16800 * 11/12 = $15400