Milligan’s Backyard Storage Kits

Determine the types of inventories these companies currently manage and describe their essential inventory characteristics.

Although the shelves are selling well, the total profit of the company is a concern. An engineer suggested that the current production of model S should be cut back because Model S shelves are sold for $1800 per unit but their costs are $1839. Therefore, company is losing money on each one. But

b. For problems #1 and #2 there were no profitable alternatives to understocking, whereas in problem #3, Ralph has a profitable alternative for understocking since 40% of customers will buy the Private. The different critical ratios from each problem produce a different optimal stocking quantity.

a. What would shoppers see when they shopped in Wal-Mart and the other “big box” stores that sell so many imported items?

b. Determine the two product numbers with the largest total dollar sales for subsequent follow-up to verify the selling prices and quantities shipped.

4. What inventory method is used to value inventories? Does this method reflect current cost at year-end?

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.

a. What would shoppers see when they shopped in Wal-Mart and the other “big box” stores that sell so many imported items?

In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.

1. Based on the information provided for the market for video games, answer the following questions.

4. May Department Stores is a merchandising company and I would link it with balance sheet number four. First clue are the inventories, 23, 2 % of total assets, usual for this type of company. As stated above, the offer their own credit cards, which can be explained the level of account receivables, 25, 7 % of total assets. Compared to the other five companies, May Departments Stores have an amount of PPE (20 % of total assets) that suits best for this type of company. The current liabilities are relatively high, 38, 3 % of total liabilities and shareholders’ equity, usual for merchandising company and a low level of long term debt, 9, 3 %.

Overstocks income statement included 3 year of date: 2003-2005. The total revenue increased 15% each year. The gross profit included all operating expenses and research development and was the totaled out after deducting cost of good sold by the revenue. Overstock included their operating Income and loss, which included all cost of income from the current operations, expenses and interest. The income statement also included the Net Income, which was what the company earned after the operating loss was calculated. Overstocks general ledger would include all assets, liabilities, sales and expenses and list all increases and decreases. Overstocks T account would include the company's depreciation, insurance, revenue, rent and investments. (Overstock.com, 2006)

I have taken it upon myself to test two inventory management systems and have found a system that will yield the least cost to Parts Emporium Inc. The two systems I have tested are the Continuous Inventory System and the Periodic Inventory System. Using data that I have gathered from the products DB032 and the EG151, I have compiled calculations and have concluded a continuous inventory system would be best for our corporation. Attached you will find said calculations; I would like to take this moment and present the continuous inventory system and recognize all of the relevant costs. The following is an explanation of each calculation under the continuous inventory system:

The main issue at Daniel Dobbins Distillery, Inc. is a disagreement among the senior management with regards to the allocation of costs. Specifically, it is a question of whether to include Ageing Costs, Cost of Barrels, and Warehouse Expense as a part of inventory (in which case it

In order to find out the exact firm by analysing the financial structure of typical firms, first we need to separate those firms which have zero inventory turnover (A, B, F and H) from those firms which have zero debt ratio which in our case are (E, H and J) and we use the information to narrow down the possibilities of each firm. In this case there are three groups of companies: