Calculate reorder level
Q: Define asset classifications.
A: Assets: Assets are the resources owned by the business, and used to earn its current and future…
Q: Define breakup value
A: The breakup value is the valuation of the company for liquidation in the market. It is best known as…
Q: Define inventory.
A: Inventory: Inventory consist of total of three components: raw material, work-in-process and…
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Q: Define Restoration costs.
A: Restoration means the act of renewing or repairing something.
Q: Define the term reversing entries.
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Q: What happen when the inventories increasing or deacresing
A: Inventories form a part of assets of the entity and comprises of stock of raw material, work in…
Q: What are the valuing inventories?
A: Cost: It is the economic value incurred by an organization to manufacture a product or to render a…
Q: Define Depletion.
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Q: refinancing rate
A: The refinancing rate refers to the interest rate which is required to be paid by the banks when they…
Q: reorder level.
A: Reorder level = Average demand * Lead time
Q: Define compounding
A: A compounding is the interest charged on interest. When any investment is made for certain years,…
Q: Explain the purpose of reversing entries.
A: Reversing entry: Reversing entries are recorded in response to the accrued liabilities and accrued…
Q: Define Valuation allowance
A: Valuation allowances are reserves created, which can set off deferred tax assets. If it is probable…
Q: Define adjustment entries and how they are passed?
A: Adjusting entries are those entries which are made at the end of the accounting period, to record…
Q: What is meant by Wraparound filing?
A: Financial reporting: Financial reporting is the procedure used to communicate the information…
Q: Define red-line method
A: Answer: A red-line strategy is nothing but a tactic used for controlling the stock, as it is the…
Q: Explain rebalance
A: Rebalancing is the strategy for realigning portfolio weightings. Rebalancing incorporates buying or…
Q: Within the consolidation process, what is the purpose of a worksheet?
A: The worksheet is used to record the consolidated balances by eliminating the inter-company…
Q: URN
A:
Q: Define Purchase return.
A: Financial accounting is the process of recording, summarizing, and reporting all the transactions in…
Q: to rec
A: Organization Costs - The cost incurred for the purpose of the Incorporating an Organization is…
Q: Define common size analysis
A: Financial statements are analyzed to determine the profit earning capacity of the business and also…
Q: Explain service method of allocating prior service cost.
A: Service cost refers to the part of pension expenses deducted every year. Service cost is amortized…
Q: Explain the meaning of the following terms: markup,additional markup, markup cancellation, net…
A: Products are priced at the selling price and used to compare different product lines. The selling…
Q: Distinguish between an edit run, a short run, and an update run
A: Accounting Information System is defined as the collection of software’s aiding the process of…
Q: How to calculate the mark up
A: The markup is calculated with the following formula:
Q: What is important for a MACRS to consider at the time of disposal?
A: MACRS stands for Modified Accelerated Cost Recovery System. These are the regulations of…
Q: Distinguish between an edit run, a sort run, and an update run.
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Q: Define Adjustments
A: Financial Accounting: It refers to the process of recording the financial transactions of the…
Q: Define devaluation
A: Currency- Currency is defined as money in terms of paper or coins which is issued by the government.…
Q: allocation base
A: Allocation base is the basis on which an overheads are allocated among different products, services,…
Q: Match the items
A: Answer: Deferred Tax Liabilities – are always presented as non-current liability in the statement of…
Q: Define reversing entries and discuss their purpose.
A: Reversing entry: Reversing entries are made at the beginning of the accounting period when the…
Q: Concept of Reconcilation statement with an example .
A: A bank compromise proclamation is a synopsis of banking and business movement that accommodates an…
Q: Define divestiture
A: Introduction: A divestiture might happen when a business unit is thought to be redundant afterward…
Q: find the period of deferral
A: Period of deferral (K) = NT - 1 where N = number of times of compounding t = time
Q: Define LIFO inventory pools.
A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…
Q: Define asset allocation models
A: Definition : Asset allocation mechanisms can be understood as an investment technique that seeks to…
Q: Explain each step in the update process
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Q: Define aging schedule
A: Aging schedule It is the accounting table that indicates the accounts receivables of the company,…
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- From the following information you are required to calculate for each product : Re order level Maximum stock Minimum Stock Average Stock Product X Product Y Average consumption per week 500 500 Minimum requirement per week 250 250 Maximum usage per week 750 750 EOQ 3,000 5,000 Replacement time 4 to 6 weeks 2 to 4 weeks(a) How do you relate stock-out risk with safety stock and quantity in stock?(b) A company uses an average of 216 circuit boards a day with a standard deviation of 16 board per day in a manufacturing process. The cost of placing and receiving an ordering is BDT 40,000. The estimated monthly carrying cost is BDT 90 per circuit board. Orders are delivered approximately 5 days after being placed. The delivery time is normal with a mean of 5 days and a standard deviation of 1 day. The company is open 360 days per year.i. Find the order quantity that is economical. ii. If the Company takes 5% stock out risk, then find safety stock (SS) quantity and Re-Order Point? iii. If the supplier offers a discount of BDT 8 per circuit board for purchasing 4000 boards at a time, then financially evaluate and justify whether the company will go with the offer or not? iv. The person who orders the boards follows this rule: Order when the amount on hand drops to 1700 boards. What is the probability that…1. ABC operates 250 days in a year and sells an average of 500 units each day. On better days, sales may reach 800 units. The supplier delivers the inventory within 3 to 6 days after receiving the purchase orders from ABC but the average time is 4 days. Assuming normal operations, what would the expected minimum inventory level be for ABC? * 1500 units 2000 units 2800 units 4800 units 2. The target investors of the new issuance of the 800,000 P1,000-par value shares expect a return of 14% and a zero growth rate. If the management quantifies this return as P160 per share, what should the target issue price per share be? * P1,600.00 P1,400.00 P875.00 P1,142.96 3. A P1,000-par value preference share was issued for a net proceed of P1,100. It will be paying interest of 9% per annum. It has a liquidating value of P1,200 at the end of its 20-year term. The applicable tax rate to the entity is 30%. The effective cost of the preference share is closest to * 8.40% 9.40% 7.50% 5.88%
- Mean demand during lead time is 117 units and the reorder point is r = 280. If annual holding cost is $20 per unit, what is the annual cost of holding safety stock? Select one:a. 3260b. 3970c. 7940d. 2340e. 5600Given the following informations annual sales in units 30,000 cost of placing an order $60,00 per unit carrying costs $ 1.50 Existing units of safety stock 300 a what is the EOQ? b. what is the average inventory based on the EOQ and the existing safety stock c. what is the maximum level of inventory? d. how many orders are placed each year?The following information relates to Blueberry Company’s materials YWorking days per year 240Normal lead time in working days 20Maximum lead time in working days 45 Annual usage 7,200 Assuming that the units of material Y will be required evenly throughout the year, thesafety stock and order point would be Safety Stock Order Pointa 600 600b 600 1,350c 750 600d 750 1,350
- A buyer has 90 pairs of his $25 price line in stock and 24 on orders are estimated at 30 per week A of 60 is maintained and stock is reordered every three weeks. It takes four weeks for delivery. Calculate OTB and () the stock turnover.Stock production and sales data from a single product of Sweetsop are given in the following: Period 1 Period 2 Period 3Production (units) 60 000 70 000 65 000Sales (unit) 60 000 55 000 65 000Opening stock (units) - - 15 000Closing stock (units) 15 000 5000 The financial data for the activity level of 60 000 units per period are as follows: Cost per unit $Direct material 2.50Direct labour 3.00Production overheads= 200% of direct labour 6.00Total cost per unit 11.50 Selling price per unit 18.00 Administrative overheads are fixed at $100 000 per period and half of the production overheads are fixed. Prepare the marginal and absorption costing statements for the three-period…Stock production and sales data from a single product of Sweetsop are given in the following: Period 1 Period 2 Period 3Production (units) 60 000 70 000 65 000Sales (unit) 60 000 55 000 65 000Opening stock (units) - - 15 000Closing stock (units) 15 000 5000 The financial data for the activity level of 60 000 units per period are as follows: Cost per unit $Direct material 2.50Direct labour 3.00Production overheads= 200% of direct labour 6.00Total cost per unit 11.50 Selling price per unit 18.00 Administrative overheads are fixed at $100 000 per period and half of the production overheads are fixed.RequiredFrom the above information :(1) Prepare the marginal and absorption…
- Stock production and sales data from a single product of Sweetsop are given in the following: Period 1 Period 2 Period 3Production (units) 60 000 70 000 65 000Sales (unit) 60 000 55 000 65 000Opening stock (units) - - 15 000Closing stock (units) 15 000 5000 The financial data for the activity level of 60 000 units per period are as follows: Cost per unit $Direct material 2.50Direct labour 3.00Production overheads= 200% of direct labour 6.00Total cost per unit 11.50 Selling price per unit 18.00 Administrative overheads are fixed at $100 000 per period and half of the production overheads are fixed. Prepare the absorption costing statements for the three-period listedReconcile…Joel Brown & Associates Limited produces and sells two products, vita 120 and vita 220. The following table provides information on the sales forecast for 2018: Sales Forecast Product Qrt1 Qrt2 Qrt3 Qrt4 Total Vita 120 5,000 6,000 4,800 5,500 21,300 Vita220 6,500 4,600 5,400 6,200 22,700 Notes: It is the company policy to have stock on hand at the end of each quarter equalling to 10% of sales for the next quarter. Budgeted sales for the first quarter of 2019 were: 7,000 units for Vita 120 and 5, 800 units for Vita 220 During 2016, the company sold one unit of Vita 120 for $600 and one unit of Vita 220 for $700 Opening inventory for the first quarter of 2018 was 320 units of Vita 120 and 420 units for Vita 220 To make one unit of Vita 120 four (4) units of raw material B20 is required while five (5) units of raw material B12 is required to make one unit of Vita 220. Prepare the sales budget Prepare the…(a) Calculate current Ratio and Quick Ratio from the followinginformation:Total Assets Rs. 350000Fixed Assets Rs. 175000Investment Rs. 70000Fictitious Assets Rs. 5000Share holders fund Rs. 200000Long term Debts Rs. 100000Inventory Rs. 45000(b) From the following information calculate the stock turnoverratio.Sales Rs. 200000, G.P 25% on cost, Opening Stock was 1/3rd of thevalue of closing stock. Closing stock was 30% of sales
