Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at: Multiple Choice $162,000. $128,000. $120,000. $180,000.

Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at: Multiple Choice $162,000. $128,000. $120,000. $180,000.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Data related to the inventories of Alpine Ski Equipment is shown below: Skis Boots Apparel Supplies Selling price $180,000 $150,000 $120,000 $60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10% 10% 10% 10% Normal gross profit ratio 20% 20% 15% 15% In applying the LCM rule, the inventory of skis would be valued at: In applying the LCM rule, the inventory of boots would be valued at:
Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 164,000 $ 157,000 $ 116,000 $ 69,000 Cost 138,000 138,000 81,200 44,850 Replacement cost 133,000 112,000 101,200 40,850 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at:
13) Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of skis would be valued at: A) $162,000. B) $128,000 C) $120,000. D) $180,000.
15) Data related to the inventories of Alpine Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 140,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 45,000 Replacement cost 120,000 130,000 110,000 41,000 Sales commission 10 % 10 % 10 % 10 % In applying the lower of cost or net realizable value rule, the inventory of apparel would be valued at: A) $108,000. B) $90,000. C) $110,000. D) $99,000.
A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999, $4.90 each; and 6,000 or more, $4.85 each. Ordering costs are $50, annual carrying costs per unit are 40 percent of purchase cost, and annual usage is 4,900 pulleys. Determine an order quantity that will minimize total cost. What is the Total Cost at the feasible solution. Round your answer to the nearest ten dollars.
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GC manufactured a range of bicycles and holds an inventory of certain bicycle parts. Part number 1258 costs P8.00 per unit. GC expects to use 8,000 units of part 1258 per year. Ordering costs have been calculated at P150 per order and nventory holding costs have been estimated at P2.75 per unit per year. The supplier of part number1258 has offered a 2% discount off the purchase price if each order is for 2,000 units or more.Required: a. Calculate the economic order quantity for 1258, assuming no discount is given. b. State whether GC should accept the discount offered. (show your workings).
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The company ABC produces travelling leather bags sold at the price of 120$ each, thus realising revenues from bags sales in amount of 1.680.000$. The CEO highlighted the problem of inventory management, especially the problem of high inventory costs if leather as a basic raw material. For each bag 1.25 squared meter of leather is used. The price of the leather is 50$ per 1square meter. The purchase department manager reported that the annual carrying cost per 1square meter of leather is 10% of the value, while the ordering costs per order have increased to 120$ per order. So far they have made equal orders every two months (60days), but now the company Board asked the OPTIMAL ordering quantity to be made, so to minimize the total inventory costs for the leather. a)an optimal quantity of leather in square meters and compare with the current one b) compare the total inventory cost that the company will pay if they plays current order, with the leather inventory costs for placing optimal…
This question is based on t he following information: B Hon Company purchases thermostats and use them in heating units it manufactures. Annual requirement for the thermostat is 2,000 units. The cost per thermostat is P 20. The cost of placing a single order is P 50 while the cost of storage is 25% of the average inventory value. The suppler of the thermostat offers a discount of 2% if the company will order in lots of 500 units. 1. How much would be the total costs associated with the inventory if the company adopts the discounted ordering policy? . A. P 40,000 B. P 40,625 C. P 41,000 D. P 42,0002. How much is the net cash flow net of income taxes for the 3rd year?A. 17,268B. 22,000C. 22,994D. 30,618

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	Skis		Boots	Apparel		Supplies
Selling price	$	180,000		$	140,000		$	120,000		$	60,000
Cost		128,000			133,000			90,000			45,000
Replacement cost		120,000			130,000			110,000			41,000
Sales commission		10	%		10	%		10	%		10	%