You place an order for 400 units of inventory at a unit price of P125. The supplier offers terms of 1/10, net 30. 1. f you take the full period, how much should you remit? 2. If you do take the discount, how much should you remit?
Q: A firm has beginning inventory of 150 units at a cost of $10 each. Production during the period was…
A: FIFO: FIFO stands for First-In, First-Out. As its name suggest, this method assumes that the oldest…
Q: Sharam Industries has a 120-day operating cycle. If its average age of inventory is 50 days, how…
A: We need to understand two cycles here. (1) Operating cycle (2) Cash conversion cycle Operating cycle…
Q: What is the average accounts payable for APP?
A: Accounting: Accounting is the art of recording, classifying and summarizing in a significant…
Q: ABC Merchandising buys merchandise costing P35,000 and returns P10,000 cost of the merchandise. If…
A: Term 2/10, N30 means that if the buyer pays the dues within 10 days then the buyer is eligible for a…
Q: Arrow Manufacturing offers discounts of 31%, 15.5%, 3% on a line of products For how much should an…
A: Given information : Selling price : $286.22 Discount offered : 31%,15.5%,3%
Q: Khalld Compony sold goods on January t, for OMR25,000, with credit terrms ol 3/10, n/30. How much…
A: when you see an invoice that states '3/10 net 30', it means that customers can receive a 3% discount…
Q: You place an order for 250 units of inventory at a price of $130 per unit. The supplier offers terms…
A: Solution- (A) Days until Overdue=30 days Working notes- Offers term of 1/10, net 30, if we pay…
Q: Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment…
A: credit terms: 3/10 - means 3% discount given if payment is made within 10 days
Q: Boeing Truck Company received an invoice showing 12 tires at $114 each, 16 tires at $164 each, and…
A:
Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…
A: Trade discount is that discount which is being given to all the customers on the list price of the…
Q: The following inventory date have been established for Tokyo Corporation: Annual sales are 338,000…
A: EOQ is that level of the unit that has a minimum logistic cost and that is economical for the…
Q: Moose sells dog bones that it purchases for $11 each. It costs Moose $50 each time bones are…
A: Inventory Cost = Purchase Cost + Ordering Cost + Carrying Cost EOQ = Squareroot of 2*Annual…
Q: Octopus Company provides you with the following information regarding its inventory Maximum lead…
A: a) Economic order quantity or EOQ is the optimal quantity of inventory to be ordered. EOQ helps…
Q: A company that purchases inventory costing $10,000 onterms 2/10, n/30, but first returns one-half of…
A: Purchase return = Total purchases x 1/2 = $10,000 x 1/2 = $5,000
Q: 1 March 2019 was 400 units at a total cost of RM1,200. The sale price of ALGA per unit is RM7. The…
A: The FIFO stands for First in first out. Using this method, the old inventory is sold first and new…
Q: If merchandise is sold on account to a customer for 1000 terms FOB shipping point, 1/10, n/30 and…
A: Discount on merchandise is given by the seller to buyer, when the seller repay the credit early or…
Q: Jasper Company is a wholesaler that buys merchandise in large quantities. Its supplier’s catalog…
A: Particulars Amount ($) The list price per unit $500 Less: Discount ($500 x 30%) 150 Net…
Q: On August 5, Oriole Ltd. sells goods for $1530 and the cost to Oriole was $700. Oriole expects a…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…
A: Given, Invoice price = $13,100 Terms = 2/10, n/30
Q: Suppose a certain appliance store purchases the following items. Calculate the extended total after…
A: For quantity in dozen, the units should be divided by 12 but ea. stands for Each, thus, the same…
Q: A retailer buys an alarm set for RM 850. Operating expenses are 5 % based on cost. The retailer…
A: Net profit on sale means the excess of selling price over cost of the product.
Q: You place an order for 440 units of inventory at a unit price of $105. The supplier offers terms of…
A: Note: 1/10, net 90: Here, 1 represents the discount rate if payment is made within ten days. And if…
Q: Sharma Kennels buys some items with a list price of $4,700. The supplier extends a 40% trade…
A: Calculate discount amount: Discount amount = list price * trade discount rate Discount amount =…
Q: Flint Ltd. Has the following quantity discount policy with its supplier Evanora Inc. Quantity Price…
A: Economic order quantity shows the ideal order size for a company i.e. the most cost-effective order…
Q: Suppose a certain appliance store purchases the following items. Calculate the extended total after…
A: Trade discount is the discount given to customers on list price. This discount will not be recorded…
Q: When a sale is made with the credit terms of 2/10, net 30, the discount of ____% will be used if…
A: When a sale is made with the credit terms of 2/10, net 30, the discount of 2% will be used if paid…
Q: The ABC Boutique had the following information at June 30, 20X1: Purchases, P180,000…
A: >Gross Profit is the excess of Net Sales over Cost of Goods Sold. >Also, if we deduct the…
Q: The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item has a…
A: The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item…
Q: Vincenzo Cassano Company sells one product, which it purchases from various suppliers. The trial…
A: The cost of goods sold means the cost of producing the goods which are being sold by the…
Q: Calculate the extended total after the trade discounts
A: Trade discount is the discount allowed by the manufacturer to the reseller. The discount is…
Q: You place and order for 100 units of inventory at a unit price of P 50.00. The supplier offers…
A: Trade discount is the discount one gets when purchasing large units of goods. So, discount is given…
Q: The Georgia Company sells inventory but also allows returns. Georgia sells items for $100 per item.…
A: The transaction, which is measurable in monetary terms, is an economic event with a third party…
Q: A Retailer purchased merchandise inventory with an invoice price of RO 80,000 and credit terms are…
A: The net cost of goods sold if payment made within discount period is 78,400 Net Cost of Goods…
Q: A firm uses an inventory item with the following characteristics. Cost per-item $ 6.00 Annual…
A: Answer - Calculation of number of reorders to be made each year: EOQ=√2DO / C =√2(1,000)(30) /…
Q: (a) The Dermaniaga Company has the following information available: [Syarikat Dermaniaga mempunyai…
A: Production budget shows how much units are expected to be produced in order to fulfil sales demand…
Q: What is the average age of inventory for Patsy if it has sales of P320,000, an average inventory of…
A: The average age of inventory is calculated as daus in year divided by inventory turnover ratio.
Q: A retailer buys merchandise from a supplier with an invoice amount of $12,800. The terms of the sale…
A: 6/20 net 30 means that 6 percent discount will be given if payment is made with in 20 days and no…
Q: If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30,…
A: Lets understand the basics. Seller for attracting early payment, gives the discount term to the…
Q: You place an order for 470 units of inventory at a unit price of $175. The supplier offers terms of…
A: Number of units = 470 units Selling price per unit = $ 175 Sales revenue = 470 * $ 175 = $ 82250
Q: A supplier offers the following discounts: Trade discounts of 20% at list price and another cash of…
A: The amount paid after discount is calculated as difference between total invoice price and discount…
Q: ou can buy a product from one of three companies. Company A for $3,200 with a trade discount of 30%,…
A: This is a case of successive discounts. Successive discounts are discounts on discounts.
Q: In the event of 12.12 Grand Sale, Agigas warehouse gave trade discounts 40%,10% and 2% to their shop…
A: Let the single discount equivalent to given trade discounts = d
Q: The rate of consumption of an item is 20 units per year. The cost of procurement (i.e. placing an…
A: The rate of consumption of an item is 20 units per year. The cost of procurement (i.e. placing an…
Q: An item listed for 4,000 has been given trade discounts of 30%, 20%, and 10% by the manufacturer. 1.…
A: Solution:- Trade discount means the amount of discount on the list price of a commodity.
Q: A manufacturer offers a 25/20 c discount if the invoice subtotal is $1,000. If the list price is $52…
A: Companies gives discount to attract the sales and increase the sales of company but that is the cost…
Q: if merchandise is sold on account to a customer for 1,000 terms fob shipping point 1/10, n/30, and…
A: Discount for early payment is allowed when the customer pays off an amount in a given time period as…
Q: Blossom Choice sells natural supplements to customers with an unconditional sales return if they are…
A: Cost of goods sold percentage = $1,350/$2,700 Cost of goods sold percentage = 50%
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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 annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?Ranger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.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?
- Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?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?Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
- Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbulls policy is to maintain 10 percent of the next months production in inventory at the end of a month. How many wheels should Tram bull purchase during September? a. 195,000 b. 112,500 c. 102,500 d. 410,000All 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?
- Charlotte sells widgets that cost $50 each to purchase and prepare for sale. Annual sales are 10,000 widgets, carrying costs are 15% of inventory costs, and Charlotte incurs a cost of $25 each time an order is placed. (a) What is the EOQ? (b) What will be the total inventory costs if the EOQ amount is ordered? (c) Suppose that Charlotte's supplier decides to offer a 3% cash discount if products are ordered in increments of 1250. How many widgest should Charlotte order each time an order is placed to minimize total inventory costs?ClipClop Company sells horseshoes to customers at a discount of 4% if the customer orders more than 10,000 horseshoes in a year. The price per shoe is $2. In April, Oats Company orders 4,000 horseshoes from ClipClop. Based on past experience with Oats Company, ClipClop expects Oats to meet the volume threshold of 10,000 horseshoes by the end of the year. What amount of revenue should ClipClop record in connection with the April sale? $7,680 $20,000 $0 because ClipClop does not know if Oats will meet the volume discount threshold $8,000Given the following, calculate the net price of the purchase by a customer who buys 1,000 cases of product and pays the supplier within 15 days of shipment. What is the total percentage discount on the sale? Cost of product: $75.00 per case Trade discount: $5.00 per case Quantity discount: 1.5% for each 500 cases Performance allowance: 5% Cash discount: 2/10, net 30