Answer:
setup cost is $7.2
Explanation:
given data
annual demand = 100,000 units
production = 4 hour cycle
d = 400 per day (250 days per year)
p = 4000 units per day
H = $40 per unit per year
Q = 200
to find out
setup cost
solution
We will apply here EPQ formula for find set up cost S that is express as
Q = 
............1
200 = 
now we take squaring on both sides and we get here
40000 = 5000 × S × 1.11
solve it we get her
S = 
S = 7.2
so setup cost is $7.2
Answer:
$12,245
Explanation:
January:
Total value = Units left in inventory × cost per unit
= (28 - 19) × $210
= $1,890
February:
Total value = Units left in inventory × cost per unit
= (38 - 18) × $215
= $4,300
May:
Total value = Units left in inventory × cost per unit
= (33 - 22) × $220
= $2,420
September:
Total value = Units left in inventory × cost per unit
= (30 - 21) × $225
= $2,025
November:
Total value = Units left in inventory × cost per unit
= (35 - 28) × $230
= $1,610
Cost of the ending inventory:
= $1,890 + $4,300 + $2,420 + $2,025 + $1,610
= $12,245
Answer:
- What is the amount of bad debt expense?
Bad debt expense $ 90
Explanation:
The initial account balance was
Accounts Receivable $ 10,000
Allowance for Uncollectible Accounts $ 100
The aging of accounts receivable method indicates that the Allowance for Uncollectible Accounts must have a $190 balance.
Acc. Rec Allow.
$ 9,000 $ 90 1% 1-30 days
$ 1,000 $ 100 10% more than 30 days
$ 10,000 $ 190
The journal entry adjustment add up to the balance of Allowance for Uncollectible Accounts to complete the $190 indicated by the aging of accounts receivable method.
Bad debt expense $ 90
Allowance for Uncollectible Accounts $ 90
- So the final balance of accounts are:
Final Balance
Accounts Receivable $ 10,000
Allowance for Uncollectible Accounts $ 190
Answer:
The amount of impairment loss that should be recognized is $20,000,000
Explanation:
In order to calculate the amount of impairment loss that should be recognized we would have to make the following calculation:
amount of impairment loss=Carrying value - Fair value
Carrying value=$100,000,000
Fair Value=$80,000,000
Therefore, amount of impairment loss=$100,000,000-$80,000,000
amount of impairment loss= $20,00,000
The amount of impairment loss that should be recognized is $20,000,000
Answer: Option (b) is correct.
Explanation:
Real GDP is totally based on the base year price level. This means that base year price level remains the same over all the periods. Therefore, Real GDP is generally not affected by the changes occur in the price level. Hence, it only includes the changes in output.
Nominal GDP takes into account the effect of changes in the price level. Therefore, it is affected by the changes in the price level and it is also measured in current U.S dollars. Hence, it doesn't show the true value of the goods and services produced in a given year.
