Flint Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $25.00 300-749 cases $23.94 750-1,499 cases $22.56 1,500 + cases $21.55 The economic order quantity is 162 cases and the annual usage is 44,615 cases. The ordering cost (K) is $5 per order and the carrying cost of inventory (H) is $17 per unit. Determine the most cost-effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) Most cost effective order quantity Total Cost %24

Flint Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price per Case 1-299 cases $25.00 300-749 cases $23.94 750-1,499 cases $22.56 1,500 + cases $21.55 The economic order quantity is 162 cases and the annual usage is 44,615 cases. The ordering cost (K) is $5 per order and the carrying cost of inventory (H) is $17 per unit. Determine the most cost-effective order quantity. (Round answers to 2 decimal places, e.g. 125.74.) Most cost effective order quantity Total Cost %24

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 19PROB

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Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
When prices are rising (inflation), which costing method would produce the highest value for gross margin? Choose between first-in, first-out (FIFO); last-in, first-out (LIFO); and weighted average (AVG). Evansville Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming A62 sold just one unit of these goods for $10,000. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
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Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $50 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
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