Essay on Group Collaboration Draft

The correct answer is D, $700,000. The nonmanufacturing costs are the costs incurred to make the inventory are crossed out below. Notice that purchasing raw material is not the same thing as incurring a cost. You have simply traded one asset for another. You have not yet used it to make a product, or provide a service.

W. W. Grainger, Inc. is recently thinking of redesigning the supply chain for shipments from China/Taiwan. The reason being as an obvious to reduce costs, lead times and to improve supply chain efficiency. The major issue identified was the lead time and a huge fixed overhead because of small shipments which then were consolidated by the company to make a full 40-feet container load. Through a thorough cost analysis and weightage of pros and cons of three alternatives, the team recommends to use an NVOCC (Non-Vessel operating common carrier) for small shipments which will lead to a lot lesser lead times and will help reduce costs as well. Along with this, the recommendation is also to increase packing efficiency for

330-10-30330-10-30-1 The primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset. As applied to inventories, cost means in principle the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. It is understood to mean acquisition and production cost, and its determination involves many considerations. 330-10-30330-10-30-2 Although principles for the determination of inventory costs may be easily stated, their application, particularly to such inventory items as work in process and finished goods, is difficult because of the variety of considerations in the allocation of costs and charges.

Alistair Wu has requested that I look at what the lowest shipping schedule and cost can be based on data that he has provided. He wants to know what the lowest possible cost of shipping will can be. Mr. Wu is also considering increasing production at the Shanghai factory from 1,300 to 2,800 units, and wants to ensure that this growth will be an affordable choice. The first chart that was given lists the factory capacity and what each warehouse demand is. The second chart lists the price of shipping from each factory to each warehouse. The chart looks at the demand in the warehouses as well as the cost to

1. Consider the $13.4 million of freight costs. What is the correct (GAAP) method of accounting for these? How did Dollar General in fact originally account for these costs? (Include in your answer a table of the effects on income in any years affected, both before and after tax, of the correct accounting and the accounting they originally used.

When replacing an old machine with a new machine, the book value of the old machine is a relevant cost.

$ 4,000 8 Purchase 800 units @ $10.40 = 8,320 16 Purchase 600 units @ $10.80 = 6,480 24 Purchase 200 units @ $11.60 = 2,320 2,000 $21,120 Required: (a) Calculate the ending inventory using FIFO assuming 400 units remain on hand at May 31. (show calculations) (b) Calculate the ending inventory using average cost assuming 400 units remain on hand at May 31. (show calculations) Part E (10

2. Assume that there is no January 1, 20X7, inventory; no variances are allocated to inventory; and the firm uses a “full absorption” approach to product costing. Compute:

Given these data, what is the inventory carrying cost of a level plan? (Points : 5)

If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the

2. Shipping Cost Savings = inventory carrying cost = item value X 0.30 X 6 days

“The Company’s inventories are reported at the lower of cost or market. Inventory costs include material, conversion costs, freight and duties and are determined by the first-in, first-out method. The Company reserves for slow-moving and aged inventory based on historical experience, current product demand and expected future demand. A decrease in product demand due to changing customer tastes, buying patterns or increased competition could impact Coach’s evaluation of its slow-moving and aged inventory and additional

i. the gross requirement for component D in period 7 comes from gross requirement for component C in period 7.

Warehouse, financing costs, insurance costs, obsolescence, pilferage and spoilage are the key components of carrying cost. In the case of business study, carrying costs can be recorded as non-capital expenditure on the scenario cash flow statement. In contrast, carrying cost costs or savings avoided could be recorded directly on the incremental cash flow statements as gains and benefits. All factors of production have costs associated with them: labor, capital and fixed assets, for instance. The cost of labor employed in the production of services and goods is in most cases measured in terms of salaries and wages. The cost of fixed assets employed in the production process is basically measured in terms of depreciations. The cost of capital employed to acquire fixed assets is normally measured in terms of interest expenses connected with raising the

1. Identify the flaws associated with the current method of assigning shipping and warehousing costs to Sharp’s products.