Answer:
Endign inventory cost= $3,708
Explanation:
Giving the following information:
Purchases 378 units at $20
Purchases 54 units at $22
<u>Under the FIFO (first-in, first-out) method, the ending inventory is calculated using the cost of the lasts units incorporated into inventory:</u>
Ending inventory in units= 180
Endign inventory cost= 54*22 + 126*20
Endign inventory cost= $3,708
Answer:
1. Annual demand ( D) = 100,000 bags
Ordering cost per order (Co) = $15
Holding cost per item per annum (H) = 15% x $2 = $0.30
EOQ = √<u>2DCo</u>
H
EOQ = √<u>2 x 100,000 x $15</u>
0.30
EOQ = 3,162 units
2. Maximum inventory
= Safety stock + EOQ
= 1,500 + 3,162
= 4,662 units
3. Average inventory
= EOQ/2
= <u>3,162</u>
2
= 1,581 units
4. Number of order
= <u>Annual demand</u>
EOQ
= <u>100,000</u>
3,162
= 32 times
Explanation:
EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.
Maximum inventory is the aggregate of safety stock and EOQ.
Average inventory is economic order quantity divided by 2
Number of order is the ratio of annual demand to economic order quantity.
Addition to Retained Earnings will be the amount will be Net Income as calculated using the above information:
Net income will be calculated as below:
Sales...........................................................$680000
Less: Cost of Sales.................................$342000
Less: Depreciation..................................$86000
Less: Interest Expense.........................$53000
Earnings Before Tax...............................$199000
Less [email protected] 23%.........................................$45770
Net Income..............................................$153230
Thus Income of $153230 will be added to Retained earnings and Cash dividend of $40000 will be reduced from therein.
I think my answer is an asset fund because it is a means of paying for goods
