annual demand for 100,000 bars to service customers. Each bar costs $5.00, and cost per order is $100.00. Carrying costs have been identified as $1.50 per bar. Recently, the supplier has offered the company a 6.5% discount if orders are placed semi-annually. Show all calculations in answering questions below. Required: What will be Achievers Club’s total inventory costs if it utilizes EOQ?
Q: Should financial statement disclosures be greater? What are the pros and cons for the increased…
A: Financial Statement: Financial statements are formal records of the monetary activities and position…
Q: DISCUSSION QUESTION 2 Microlamp Inc. produces desk lamps at its factory. The following relates to…
A: What is meant by Marginal costing? Marginal costing is the method to account variable cost as unit…
Q: What is the correct entry to write off the inventory under perpetual method?
A: Company can write off Inventory from books if it thinks that some items have no value in the…
Q: please just categorize which are tax object and which are not Prize we received after competing as…
A: In this question , we will categorized that which is taxable income and which is not.
Q: Dexter Construction Corporation is building a student condominium complex; it started construction…
A: Capitalized interest:- It is the unpaid interest that is added to the current principal balances of…
Q: fers two credit terms to YVONE as follows: Credit term number 1: 2/15, net 30 C
A: A term that helps in indicating when the amount of payment is due for the sales and made on credit…
Q: Matt has two single accounts at Midtown Bank. One account has a balance of $74,112.09 and the other…
A: Federal deposit insurance corporation is also written as FDIC. It provides the insurance coverage…
Q: before the transaction, Richard, Inc. have 20,000 outstanding shares. Richard issued 12,000 shares…
A: 1. Goodwill (gain on bargain purchase) on the business combination:
Q: Perpetual Inventory Using FIFO The following units of a particular item were available for sale…
A: Please see Step 2 for required information.
Q: An account that is classified as a contra-revenue: O a. may include sales discounts and credit card…
A: Solution: A contra revenue account is reverse of revenue account i.e. contra revenue accounts is…
Q: Full Belly Farm grows organic vegetables and sells them to distributors and local restaurants after…
A: Special Order: Unusual client orders for products or services that are not normally fulfilled by a…
Q: Vaughn Bikes Ltd. reports cash sales of $6,600 on October 1. (a) Record the sales assuming they are…
A: Total Cash received = Sales + Total Sales Tax Total Sales Tax = (Sales x GST rate) + (Sales x QST…
Q: The following selected transactions were completed by Betz Company during July of the current year.…
A: Introduction Purchase of merchandise inventory is recorded by debiting to merchandise inventory…
Q: Exercise 11-33 Journal Entries for Overhead (Appendix A) (LO 11-8) Crystal Glassware Company has the…
A: Solution A journal is a company's official book in which all business transaction are recorded in…
Q: [The following information applies to the questions displayed below.]
A: Income is recorded as income when it is earned or accrued, accrual method of accounting this concept…
Q: 9.Hong Kong Clothiers reported revenue of $5,150,000 for its year ended December 31, 2021. Accounts…
A: Accounts receivable is the balance of money due to a firm for sale of goods or services but not yet…
Q: Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment.…
A: When the contract rate of 7% is more than the market rate of 6% the bonds are said to be issue at…
Q: how to solve for net income with what I have, thank you.
A: The net income is calculated as difference between sales and expenses incurred during the period.…
Q: Prepare journal entries to record the following transactions entered into by the Marrow Company:…
A: As per the given question, we have to pass a few journal entries in the books of Marrow Company. The…
Q: c. $300 lease payment received from the Men's Club this year for renting Jeremy's trailer last year.…
A: Cash method is the method in which income is recorded when it is actually received and not at the…
Q: information about book values. Estimated market values are also listed, based upon Legume Company's…
A: Calculation of goodwill in Acqusition For Calculation of goodwill it taken consider the purchase…
Q: Bettinghaus Corporation began business on January 2, 2019, with five employees. Its sick leave and…
A: The financial statements which covers a period of less than one year is known as interim financial…
Q: The account that represents the increase in a firms net assets since its incorporation is A…
A: The net assets can be calculated by deducting the total liability. So the excess of assets over the…
Q: question 8. Determined that the Capital Projects Fund should be reimbursed $3,000 for wages that…
A: In this question, we just post one transaction with amount, related to the capital Project Funds.
Q: Only answer part1
A: The goodwill means the favorable reputation that a company has with its customers. Goodwill arises…
Q: (Common-size analysis and differences in profitability and leverage) Comparative financial statement…
A: Common size analysis , also known as vertical analysis expresses each item as a percentage of sales…
Q: Carol is starting a virtual craft workshop business. Currently she is planning to have 3 different…
A: Notes Party A Party B Party C Totals Sales Mix A:B:C = 7:1:2 70% 10% 20% 100% Selling price…
Q: 11a.Harry and Sally formed the Evergreen partnership by contributing the following assets in…
A: Solution:- Calculation of Harry’s tax basis in his partnership interest as follows under:-
Q: What is money laundering in the Philippines? What are it's advantages and disadvantages? What do we…
A: Money Laundering: Monies laundering is a generic term used to describe a criminal enterprise in…
Q: What is the guest ledger? Give an example of something included in it. Describe how you would post a…
A: The conventional 'Guest Ledger' is an 'accrual' mechanism for handling each booking's accounting in…
Q: A. Juliana invested P700,000. B. Airplane was purchase by business for P 450,000. C. Equipment…
A: Accounting equation Assets = liabilities + Equity
Q: Permanent Fund Transactions At the start of 2020, a resident of the City of LaVerada donated $2.5…
A: The question is based on the concept of Financial Accounting.
Q: Which of the following statements concerning an operations list is true? 1) It is an engineering…
A: The conversion process of a company alludes to operations such as the fabrication or creation of…
Q: 3M Moldex Initial Cost $5,426 $4,743 Annual $1034 $1,361 Cartridge Replacement Annual Maintenance…
A: 3M Moldex Initial Cost $ 5,426 $ 4,743 Annual Cartridge Replacement $…
Q: Aside from a checkbook, many checking accounts nowadays come with an ATM or debit card for…
A: A checking account is a deposit account held at a financial institution that allows withdrawals and…
Q: Lynch Company manufactures and sells a single product. The following costs were incurred during the…
A: Cost refers to the expenditure incurred by the firm as a consideration for goods or services.
Q: Problem #2: AMA cooperative store had the following activities for year ended 2021: grös3 sales…
A: Net sales is the sales after any discount or return and allowances. Gross profit is the amount which…
Q: Division A makes a part with the following characteristics: **SEE IMAGE TO SEE DETAILS** a}…
A: Transfer price is the internal price assigned to the purchase of one unit of product produced by…
Q: The following inventory information is available for Cullumber Manufacturing Corporation for the…
A: Total Manufacturing Overhead cost = Utilities + Depreciation on manufacturing machinery +…
Q: SCHEDULE OF EXPANDED WITHHOLDING TAX (EWT) Income Payment EWT Income Payment EWT…
A: Expanded Withhold Taxes According of Bureau of Internal Revenue (BIR) which provides the guidelines…
Q: Three commonly used measures of solvency are the debt-to-equity ratio, the times interest earned…
A: A solvency ratio is a crucial metric used by prospective business lenders to assess an…
Q: Why is it advantageous for a company to finance its receivables?
A: Company gets immediate access to cash without waiting a long period for the debtors/ receivables to…
Q: Mindsetta Music Inc. issued bonds on March 1, 2020, with a par value of $420,000. The bonds mature…
A: solution 1: semiannual interest payment for these bonds = $420,000*14%*6/12 = $29,400
Q: In tax year 2021-22, Class 2 NICS are payable by monthly or quarterly direct debit at a flat rate of…
A: P11D: A P11D is the structure used to report costs and advantages paid to directors and workers…
Q: Question Eight Inter Company had the following accounts from the adjusted trial balance at June 30,…
A: Closing entries are used to close the temporary accounts and transfer the balance to the permanent…
Q: Light Me Up Lamps has variable expenses of 30% of sales and monthly fixed expenses of $140,000.…
A: The question is based on the concept of Cost Accounting.
Q: Calculate the return on assets and the return on shareholders' equity for both companies. (Round…
A: Financial ratios are calculated to determine the financial position of the company. These ratios…
Q: Réquired Use the following information for the Exercises below. (Static) (The following information…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Depreciation - office Depreciation - store Dividend Revenue Freight in Freight out Income from…
A: Introduction
Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…
A: Solution: Dividend per share = Total dividends to particular class / Nos of shares held in…
The Junior Achievers Club maintains an inventory of chocolate bars to meet its annual demand for 100,000 bars to service customers. Each bar costs $5.00, and cost per order is $100.00. Carrying costs have been identified as $1.50 per bar. Recently, the supplier has offered the company a 6.5% discount if orders are placed semi-annually. Show all calculations in answering questions below.
Required:
- What will be Achievers Club’s total inventory costs if it utilizes EOQ?
Step by step
Solved in 2 steps with 1 images
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total order-filling costs of 900,000. There are two types of customers: those who order 50,000 pound lots (small customers) and those who order 250,000 pound lots (large customers). Each customer category is responsible for buying 1,500,000 pounds. The selling price per pound is 2 per lb for the 50,000 pound lot and 3 per lb for the larger lots, due to differences in the type of chocolate. ABC would likely assign order-filling costs to the customer type as follows: a. 450,000, small; 450,000, large (using pounds as the driver) b. 360,000, small; 540,000, large (using revenue as the driver) c. 750,000, small; 150,000, large (using number of orders as the driver) d. 450,000, small; 450,000, large (using customer type as the driver)Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
- Sports Socks has a policy of always paying within the discount period and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 85% of its payments are made in the month of purchase and 15% are made the following month. The direct materials budget provides for purchases of $129,582 in November, $294,872 in December, $239,582 in January, and $234,837 in February. What is the balance in accounts payable for January 31, and February 28?All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?
- On January 1, Sweet Pleasures, Inc., begins business. The company has 14,000 cash on hand and is attempting to project cash receipts and disbursements through April 30. On May 1, a note payable of 10,000 will be due. This amount was borrowed on January 1 to carry the company through its first four months of operation. The unit purchase cost of the companys single product, a box of Sweet Pleasures chocolates, is 12. The unit sales price is 28. Projected purchases and sales in units for the first four months are: Sales terms call for a 5% discount if paid within the same month that the sale occurred. It is expected that 50% of the billings will be collected within the discount period, 25% by the end of the month after purchase, 19% in the following month, and 6% will be uncollectible. Approximately 60% of the purchases are paid for in the month purchased. The rest are due and payable in the next month. Total fixed marketing and administrative expenses for each month include cash expenses of 5,000 and depreciation on equipment of 2,000. Variable marketing and administrative expenses total 6 per unit sold. All marketing and administrative expenses are paid as incurred. REQUIREMENT You have been asked to prepare a cash budget for the next four months to see if the loan can be repaid. Review the worksheet CASHBUD that follows these requirements. The problem data have already been entered in the Data Section of the worksheet.Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? Bulldogs Inc. currently fills mail orders from all over the country and receipts were received in its head office. The company’s average accounts receivable is P3,125,000 and is financed by a bank loan with 10% interest. Bulldogs is considering a regional lockbox system to speed up collections. This system is projected to reduce the average accounts receivable by 15%. The annual cost of the lockbox system is P25,000. What is the estimated net annual savings in implementing the lockbox system?Morning Glory buys cereal directly from the manufacturer for $20 per case. The company’s annual demand for cereal is 200,000 cases and the company believes that the demand is constant for each of the 250 days per year that it is open for business. Average lead time from the supplier for new orders is a constant 8 days. The purchasing agent at Morning Glory estimates the annual inventory carrying cost is 10% and it costs approximately $40 to prepare, send, and receive an order. Morning Glory discovered if it orders 10,000+ cases each time, it can obtain a $2 price break per case from the supplier. What order quantity should Morning Glory place based on this information?
- Big Toy, Inc. annually sells 115,000 units of Big Blobs. Currently, inventory is financed through the use of commercial bank loans. Big Toy pays $11.80 per Big Blob. The cost of carrying this inventory is $3.40 per unit while the cost of placing an order involves expenses of $500 per order. Since Big Blobs are imported, delivery is generally 25 days but may be as long as 30 days. To manage inventory more efficiently, the management of Big Toy, Inc. has decided to use the EOQ model plus a safety stock to determine inventory levels. What is the economic order quantity? Round your answer to the nearest whole number. units Today is January 1 and the current level of inventory is 11,500 units; when should the first order be placed based on the economic order quantity? Assume 365 days in a year. Round your answer to the nearest whole number. The first order based on the EOQ model would be placed on the th day. Management always wants sufficient Big Blobs so that they never are out…Meijer stores carries a specialty line of flavored syrups. One of the most popular of these is raspberry syrup which cells, on average, 55 bottles per week. Myers cost is nine dollars per bottle. Meijer has determined its order cost to be $54 in inventory Karen cost is 20%. Myers open for business 52 weeks per year. What is the EOQ? If Myers’s order the EOQ quantity each time, what will be the inventory turnover rate for the syrup?A retailing company believes it can sell 4 million of its main product within the upcoming financial year. The inventory manager plans to order its main product forty times over the next year. The carrying cost is $0.03 per product per year. The order cost is $600 per order. Calculate the following: i) The annual carrying costs ECM Manufacturing Company Limited has three (3) possible suppliers, all of which offer different credit terms. Apart from the slight differences in credit terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in table shown on the next page. Supplier Credit Terms Supplier 1 1/10 net 30 EOM Supplier 2 2/20 net 75 EOM Supplier 3 3/10 net 50 EOM Assuming a 365-day year, answer the following. d. What impact, if any, will “stretching” the accounts payable (net period only) of supplier 3 by 30 days, have on your answer to part b with regards to supplier 3. Ans…