Dream Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of P4 per order, and carrying costs of P1.008 per unit. The following year, the company. learns it can reduce ordering costs to P1 per order but that carrying costs will stay the same at P1.008 per unit. What is the total cost of inventory to be expected?
Q: Independently considering each of the following statements regarding Form W-2 (Wage and Tax…
A: Answer:- W-2 form meaning:- A basic tax form that shows an employee's total salary earned and taxes…
Q: If the corporation is considered as de facto, who can question its existence? Board of Directors…
A: When corporation is considered as de facto, it means that corporation exist even though it may not…
Q: A and B realized that the partnership is hindering them from starting their respective families. Due…
A: Since, in the given case partners by themselves decided to fissolve the partnership. Thus, its a…
Q: Use the following Unadjusted Trial Balance for Monroe Entertainment Company for questions 44 - 49:…
A: Solution: Liabilities are present obligation as a result of past event that requires outflow of…
Q: ABC Company leased into a ten-year non-cancelable lease requiring year-end payments of P1,200,000 on…
A: Lease Payment: P1,200,000 Implicit interest rate: 10% Initial direct cost: P150,000 Amount financed…
Q: Compute NET Profit margin ratio Income Statement ($M) 2019 Revenue 372 Depreciation Other Operating…
A: The net profit margin ratio is calculated as net income divided by revenue.
Q: For purposes of the election to defer Federal estate tax payments relative to an interest in a…
A: There is condition to elect extension of federal tax payment relative to an interest in a closely…
Q: Ellie Inc., a calendar year C corporation, wants to make a gift to a charity that is deductible on…
A: Form 1120 Line 19. Charitable Contributions Enter contributions or gifts actually paid within the…
Q: Supposed you want to buy a used car but your savings is not enough. To do this, you borrow P60,000…
A: Loan amortization is the process of scheduling out a fixed-interest rate loan into scheduled…
Q: What is the purpose of the statement of cash flows? What are the three types of cash flow…
A: cash flow statement are the statement which show the position of cash on particular date. These…
Q: The First- In- First- Out method, which is mainly utilized to assign the average cost of production…
A: First in first out (FIFO) is one of the method of inventory valuation, under which inventories which…
Q: Bonneau Corporation declares a cash dividend of $100,000 on July 1 for any shareholder on record on…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…
Q: how the Total Asset Turnover Ratio for pepsi company for year 2019, 2020, 2021 calculated?
A: Asset Turnover Ratio = Net Sales / Average Total Assets. A business that has net sales of…
Q: 13 the cost of a property is estimated to be 3500000 and the sales price quoted to be 4500000. An…
A: Installment method is a method of revenue recognition in which gross profit is deferred until cash…
Q: O Perseverance Corporation is deciding whether to pursue a restricted or relaxed current asset…
A: Return on equity = Net income/equity Roe under restricted policy is 6.5℅ and under relaxed policy…
Q: Double-entry accounting requires that debits must always equal ____________. Group of answer choices…
A: Solution: Double entry accounting system is the accounting system which ensures that every financial…
Q: The chart of accounts for Roth Co. includes the following accounts: Cash, Accounts Receivable,…
A: Services are provided on account. So accounts receivable is increased and fees earned is increased.
Q: You were asked by your audit client Panga Inc., to assist them in preparing its income tax return…
A: First of All Calculate Gross Total Income Pre Tax income = 10000000 Add : Provision for the Loss…
Q: Using the following accounts and balances, prepare the stockholders' equity section of the balance…
A: The amount of assets remaining after all liabilities have been paid is referred to as stockholders'…
Q: find the outstanding of pepsi co for year 2019, 2020, 2021?
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: True or False: Borrowing and repaying debt principal does not impact net worth. Select one: O True…
A: Introduction: The net worth of a firm is that the total of its assets minus its liabilities as…
Q: What is a business owned by one individual called and the easiest legal form of business to organize…
A: Solution: Limited liability company, partnership and corporation needs more than one individual to…
Q: What are the rights of creditors (claims against the assets of the company--creditors' equity) that…
A: Amount payable with In normal operating cycle is called as current liability.
Q: hello may i ask how much is the net adjustment to the cash account? including debit or credit thank…
A: Assets have debit balance and Liabilities have credit balance. Cash account is current asset with a…
Q: From among the list, what is the difference between a partnership and a corporation? a. Existence…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Which financial statement is a summary of the revenue and expenses for a specific period of time,…
A: income statement: Matches revenues and expenses to calculate net profit or loss. pie chart: shows…
Q: Lovelyn Co. paid one half of its earnings in dividends. Its earnings increased by 50% and the amount…
A: The dividend payout ratio is calculated by dividing the dividend per share by the earnings per…
Q: Which of the following types of messages might the Active Auditor display? Question 9 options:…
A: The auditor uses various tools to help in carrying out audit procedures. The active auditor display…
Q: 1. What is the net cash provided by operating activities? a. 1,900,000 b. 2,900,000 c. 2,350,000 d.…
A:
Q: BBS Corporation is a Resident Foreign Corporation, compute the Taxable Income and the Income Tax…
A: Income tax due is the amount which is due to the taxpayer which have to be paid to the government…
Q: Incremental costs are the generated by a proposed alternative. A) additional revenues B) additional…
A: Incremental cost and incremental revenue are used in differential analysis. These are used to…
Q: Kate commenced business as a sole trader under the name “Mug Lover” on 1 December, 2020. Mug Lover…
A: Introduction:- Ledger is the process of transferring the entries from journal to particular ledger…
Q: Choose the correct answer: Which of the following is equal to the SFP? A. Unadjusted trial…
A: Abbreviations used in the Question : SFP means Statement of Financial Position of Balance Sheet SCI…
Q: What is the difference between book value accounting and market value accounting? How do interest…
A: Here discuss about the details of the book value of accounting and the market value of accounting.…
Q: On January 1, 2021, ABC Company enters into a 4-year lease of a machinery. Annual rental is P200,000…
A: The lease is a type of financing in which the owner of the asset provides the right to use the asset…
Q: 15 Bradford contributed cash of $25,000 and Land with an adjusted Basis of 545,000 and a Fair Market…
A: Partnership is the business where 2 or more than 2 parties can invest and share and also contributes…
Q: On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10.8 million.…
A: A corporation does not record any profits from the a selling transaction under the cost recovery…
Q: Problemt No. 1- Fallen Moon Legal Services Below are the details from the books of Fallen Moon Legal…
A: Adjusting entries are passed at the end of an accounting period to record any unrecorded income or…
Q: Dream Corporation is trying to improve its inventory control system and has installed an online…
A: As per Given Question, Ordering Cost = P4 per unit Carrying Cost = P1.008 per unit If Company…
Q: a) Prepare the absorption costing and marginal costing income statements for 1st quarter, 2021 b)…
A: a) Income Statement under absorption costing method for the first quarter: Particulars Amount…
Q: Identify which category of shareholder's equity is affected by each item and briefly explain how it
A: Shareholders equity is one of the important element of balance sheet of the business. It shows total…
Q: 7. Canyon City Retail uses the moving average flow assumption. On July 1, there were 150 units on…
A: Using moving average method, average cost per unit is calculated as total cost of goods available…
Q: April 2 Purchased $3,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice…
A: Business Translations: An economic event involving a third party that is documented in the…
Q: In 2018, Ronnie Alonte received from his employer a promissory note with a face value of P 50,000…
A: Notes Receivable Notes receivable which are received in the form of services which are provided to…
Q: The four major financial reports that summarize the effects of economic events (like the results of…
A: Economic events are the financial transactions that are occurring in the regular course of business.…
Q: 1. Parent Company issued 75,000 new shares of its P5 par value ordinary shares valued at P12 per…
A:
Q: What are the different type of income tax?
A: The answer for the question on the different types of income tax is discussed hereunder : Taxes are…
Q: Which statement is true? Beauty and barber shops are cash-intensive businesses. Where the…
A: Introduction: A cash intensive business is one that receives a large number of cash payments. A…
Q: 6. Business A and Business B are both engaged in retailing, but seem to take a different approach to…
A: INTRODUCTION: The aim of the financial statements is to provide financial information about a…
Q: 5. The following is the year ended data for Baker Company: Sales Revenue £152,000 Cost of Goods…
A: Cost of goods available for sale is the sum of beginning inventory and cost of goods manufactured.
Dream Corporation is trying to improve its inventory
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 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?The Home Depot is a leading specialty retailer of hardware and home improvement products and is the second-largest retail store chain in the United States. It operates large warehouse-style stores. Despite declining sales and difficult economic conditions in 20X1 and 20X2, The Home Depot continued to invest in new stores. The following table provides summary hypothetical data for The Home Depot. REQUIRED a. Use the preceding data for The Home Depot to compute average revenues per store, capital spending per new store, and ending inventory per store in 20X2. b. Assume that The Home Depot will add 100 new stores by the end of Year +1. Use the data from 20X2 to project Year +1 sales revenues, capital spending, and ending inventory. Assume that each new store will be open for business for an average of one-half year in Year +1. For simplicity, assume that in Year +1, Home Depots sales revenues will grow, but only because it will open new stores.Pedee Companys inventory turnover in days is 80 days. Which of the following actions could help to improve that ratio? a. Increase the sales price. b. Increase manufacturing costs. c. Reduce the cost of goods sold. d. Reduce average inventory. e. All of these.
- Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.You are the bookkeeper at a small merchandising firm. You are comparing the income statements from the last three years. You notice that the Purchases Returns and Allowances account (as a percentage of net sales) has been increasing at an alarming rate. If you were a manager, to whom would you speak in the organization to help you understand why so much merchandise is being returned? What types of questions would you ask?Danna Martin, president of Mays Electronics, was concerned about the end-of-the year marketing report that she had just received. According to Larry Savage, marketing manager, a price decrease for the coming year was again needed to maintain the companys annual sales volume of integrated circuit boards (CBs). This would make a bad situation worse. The current selling price of 18 per unit was producing a 2-per-unit profithalf the customary 4-per-unit profit. Foreign competitors kept reducing their prices. To match the latest reduction would reduce the price from 18 to 14. This would put the price below the cost to produce and sell it. How could these firms sell for such a low price? Determined to find out if there were problems with the companys operations, Danna decided to hire a consultant to evaluate the way in which the CBs were produced and sold. After two weeks, the consultant had identified the following activities and costs: The consultant indicated that some preliminary activity analysis shows that per-unit costs can be reduced by at least 7. Since the marketing manager had indicated that the market share (sales volume) for the boards could be increased by 50% if the price could be reduced to 12, Danna became quite excited. Required: 1. CONCEPTUAL CONNECTION What is activity-based management? What phases of activity analysis did the consultant provide? What else remains to be done? 2. CONCEPTUAL CONNECTION Identify as many nonvalue-added costs as possible. Compute the cost savings per unit that would be realized if these costs were eliminated. Was the consultant correct in the preliminary cost reduction assessment? Discuss actions that the company can take to reduce or eliminate the nonvalue-added activities. 3. Compute the unit cost required to maintain current market share, while earning a profit of 4 per unit. Now compute the unit cost required to expand sales by 50%, assuming a per-unit profit of 4. How much cost reduction would be required to achieve each unit cost? 4. Assume that further activity analysis revealed the following: switching to automated insertion would save 60,000 of engineering support and 90,000 of direct labor. Now, what is the total potential cost reduction per unit available from activity analysis? With these additional reductions, can Mays achieve the unit cost to maintain current sales? To increase it by 50%? What form of activity analysis is this: reduction, sharing, elimination, or selection? 5. CONCEPTUAL CONNECTION Calculate income based on current sales, prices, and costs. Then calculate the income by using a 14 price and a 12 price, assuming that the maximum cost reduction possible is achieved (including Requirement 4s reduction). What price should be selected?
- Costco is the largest chain of membership warehouse clubs in the world, based on sales volume, and it is the fifth largest general retailer in the United States. Costco focuses on selling products at low prices, often at a very high volume. These goods are usually bulk-packaged and marketed primarily to large families and businesses. Costco became the first company to grow from zero to 3 billion in sales in less than six years. In a recent fiscal year, Costcos sales totaled 116 billion, a 2 percent increase from 2015, and its net income reached 2.35 billion, an 1 percent decrease from 2015. This information, and much more, can be derived from the financial statements that merchandising firms such as Costco prepare on a regular basis to provide shareholders and other interested parties information about the companys activities and financial performance. 1. What type of information would a classified income statement provide to shareholders and other interested parties? 2. What type of information would a classified balance sheet provide to shareholders and other interested parties? Why would this information be important for calculating the working capital and the current ratio, for example?The controller for Dohini Manufacturing Company felt that the number of purchase orders alone did not explain the monthly purchasing cost. He knew that nonstandard orders (for example, one requiring an overseas supplier) took more time and effort. He collected data on the number of nonstandard orders for the past 12 months and added that information to the data on purchasing cost and total number of purchase orders. Multiple regression was run on the above data; the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 total purchase orders and 45 nonstandard orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders and 580 nonstandard orders? What will estimated total purchasing cost be? What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 2? (Round your answers to the nearest dollar.)Kimball Company has developed the following cost formulas: Materialusage:Ym=80X;r=0.95Laborusage(direct):Yl=20X;r=0.96Overheadactivity:Yo=350,000+100X;r=0.75Sellingactivity:Ys=50,000+10X;r=0.93 where X=Directlaborhours The company has a policy of producing on demand and keeps very little, if any, finished goods inventory (thus, units produced equals units sold). Each unit uses one direct labor hour for production. The president of Kimball Company has recently implemented a policy that any special orders will be accepted if they cover the costs that the orders cause. This policy was implemented because Kimballs industry is in a recession and the company is producing well below capacity (and expects to continue doing so for the coming year). The president is willing to accept orders that minimally cover their variable costs so that the company can keep its employees and avoid layoffs. Also, any orders above variable costs will increase overall profitability of the company. Required: 1. Compute the total unit variable cost. Suppose that Kimball has an opportunity to accept an order for 20,000 units at 220 per unit. Should Kimball accept the order? (The order would not displace any of Kimballs regular orders.) 2. Explain the significance of the coefficient of correlation measures for the cost formulas. Did these measures have a bearing on your answer in Requirement 1? Should they have a bearing? Why or why not? 3. Suppose that a multiple regression equation is developed for overhead costs: Y = 100,000 + 100X1 + 5,000X2 + 300X3, where X1 = direct labor hours, X2 = number of setups, and X3 = engineering hours. The coefficient of determination for the equation is 0.94. Assume that the order of 20,000 units requires 12 setups and 600 engineering hours. Given this new information, should the company accept the special order referred to in Requirement 1? Is there any other information about cost behavior that you would like to have? Explain.
- Costco is the largest chain of membership warehouse clubs in the world based on sales volume, and it is the fifth largest general retailer in the United States. Costco focuses on selling products at low prices, often at a very high volume. These goods are usually bulk-packaged and marketed primarily to large families and businesses. Costco became the first company to grow from zero to 3 billion in sales in less than six years. In a recent fiscal year, Costcos sales totaled 76.3 billion, a 29.3 percent increase from 2006, and its net income reached 1.30 billion, an 18.1 percent increase from 2006. This information, and much more, can be derived from the financial statements that merchandising firms such as Costco prepare on a regular basis to provide shareholders and other interested parties information about the companys activities and financial performance. 1. What type of information would a classified income statement provide to shareholders and other interested parties? 2. What type of information would a classified balance sheet provide to shareholders and other interested parties? Why would this information be important for calculating the working capital and the current ratio, for example?Global Reach, Inc., is considering opening a new warehouse to serve the Southwest region. Darnell Moore, controller for Global Reach, has been reading about the advantages of foreign trade zones. He wonders if locating in one would be of benefit to his company, which imports about 90 percent of its merchandise (e.g., chess sets from the Philippines, jewelry from Thailand, pottery from Mexico, etc.). Darnell estimates that the new warehouse will store imported merchandise costing about 16.78 million per year. Inventory shrinkage at the warehouse (due to breakage and mishandling) is about 8 percent of the total. The average tariff rate on these imports is 5.5 percent. Required: 1. If Global Reach locates the warehouse in a foreign trade zone, how much will be saved in tariffs? Why? (Round your answer to the nearest dollar.) 2. Suppose that, on average, the merchandise stays in a Global Reach warehouse for nine months before shipment to retailers. Carrying cost for Global Reach is 6 percent per year. If Global Reach locates the warehouse in a foreign trade zone, how much will be saved in carrying costs? What will the total tariff-related savings be? (Round your answers to the nearest dollar.) 3. Suppose that the shifting economic situation leads to a new tariff rate of 13 percent, and a new carrying cost of 6.5 percent per year. To combat these increases, Global Reach has instituted a total quality program emphasizing reducing shrinkage. The new shrinkage rate is 7 percent. Given this new information, if Global Reach locates the warehouse in a foreign trade zone, how much will be saved in carrying costs? What will the total tariff-related savings be? (Round your answers to the nearest dollar.)Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 60,500 units per year, an ordering cost of $12 per order, and carrying costs of $1.20 per unit.a. What is the economic ordering quantity?___________Units b. How many orders will be placed during the year? __________Orders c. What will the average inventory be? ____________Units d. What is the total cost of ordering and carrying inventory? $____________