Ace Hardware's EOQ is 100 widgets, and it maintains a 50 unit safety stock. Which of thefollowing is Ace's average inventory?100 units60 units57.07 units12.25 units75 units

Economic order quantity is the optimal quantity required to be ordered to ensure that ordering and…

Answered: Ace Hardware's EOQ is 100 widgets, and…

Ace Hardware's EOQ is 100 widgets, and it maintains a 50 unit safety sto following is Ace's average inventory? 100 units 60 units 57.07 units 12.25 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs…

A: The question is based on the concept of Cost Accounting. The valuation of inventory is made in three…

Q: Almaden Hardware Store sells two product categories, tools and paint products. Information…

A: Working Note : Cost = Units * Cost per unit Market price = Units * Market price per unit

Q: Dhapa

A: The objective of the question is to prepare a budget for Iguana, Incorporated for the second quarter…

Q: Given the following purchases: 1/15/2020 10 units @ $3 11/15/2020 10 units @ $6 8/15/2020 25 units @…

A: Inventory valuation:.There are three methods of inventory valuationFirst in first out methodLast in…

Q: Folsom River products is contemplating the use of economic order quantity analysis to optimize…

A: Economic order quantity is the ideal quantity to be ordered which gives the lowest cost of ordering…

Q: 10. Prepare a statement showing the pricing of issues, on the basis of FIFO, LIFO, Weighted average…

A: Date 01 March Purchases 300 9.5 2850 05 March Issued 250 02 March Purchases 200…

Q: Corp uses the LIFO method. Using the information provided, what is the unit cost of the 17 units…

A: The objective of the question is to determine the unit cost of the remaining units in inventory at…

Q: Ceiba River Supply company has an economic order quantity of 30 paddles per order. They hold a…

A: Average inventory= (Economic order quantity/2) + Safety stock

Q: The inventory of Royal Decking consisted of five products. Information about ending inventory is as…

A: Invntory is valued at lower of Cost or market Value i.e. the closing inventory will be valued at…

Q: 5. ABC Hardware purchases 500 hammers a year for its inventory from its supplier who bers pricing at…

A: Economic order quantity is quantity which ensures that the company should minimize its inventory…

Q: Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for…

A: Inventory holding cost is related to the storage of inventory. When the units are not sold, the…

Q: Why will the net income go up by $2? Help me make sense of this problem

A: The objective of this question is to understand the impact of a sale on the reported net income of…

Q: emen’s is a manufacturer that produces bracket assemblies. Demand for bracket assemblies (x) is 135…

A: Inventory refers to the sum total of goods or materials held by a company in their warehouses for…

Q: Total Sales: $60,000 Price per unit: $10 Estimated order cost: $25 per order Inventory Cost: $0.70…

A: Optimum order size is order quantity at which both ordering and carrying costs are minimum

Q: Check my work Ace Hardware Store sells two product categories, tools and paint products. Information…

A: A journal entry is a type of accounting entry that is used to record a business transaction in a…

Q: (a) How much is the order quantity based on EOQ model? (b) How much is the total cost using EOQ…

A: EOQ is the acronym of economic order quantity; it is that level of quantity which is ordered by the…

Q: Campbell Company has beginning inventory of 15,000 units and expected sales of 20,000 units. If the…

A: Inventory is the amount of goods available in stock of the company at any point of time in the…

Q: Andrew Company produces a specialty wood furniture product, and has the following information…

A: EOQ :— It stands for economic order quantity. It is the level of units at which total cost is…

Q: Iguana, Incorporated, manufactures bamboo picture frames that sell for $20 each. Each frame requires…

A: An income statement is a financial statement that reports a company's revenues, expenses, gains, and…

Q: 12. The Costup Company sells many products. Top is one of its popular items. Below is an analysis of…

A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: If demand for one year is 25,000 units, relevant ordering cost for each purchase order is $210 and…

A: The economic order quantity (EOQ) is a quantity that a company should buy to minimize its cost of…

Q: M Department Store has 5 departments-

A: The contribution margin (CM) is determined to evaluate the department's earning in regard to…

Q: pany plans to sell 220 units. The selling price per unit is $24. There are 50 units in the beginning…

A: A budget is defined as an estimate of revenue income and expenses for a set period of time. The…

Q: ntegrity Company had a beginning inventory of 3,000 units 35% complete, and an ending inventory of…

A: Weighted average method is one of the method used in process cost accounting. Under this method,…

Q: The annual demand for laptop battery is 4500 units. The cost per unit is RO 8 and inventory carrying…

A: Economic order quantity is the optimum level of reorder quantity at which the combination of…

Q: 6. One of Alpha Company's products has the following information: Annual requirements Cost of…

A: ECONOMIC ORDER QUANTITY Economic order quantity is help to Minimize the Inventory Cost. Economic…

Q: What would be the minimum stock level from the following data? Reorder level 2,400 units Lead time…

A: We have the following information: Reorder level: 2,400 units Lead time: 2–5 days Maximum usage:…

Q: Moath Company reports the following for the month of June. Units Unit Cost Total Cost 200 $ 1,000…

A: Formula: Weighted average unit cost = Total cost / Number of units. Division of Number of units with…

Q: 24. A firm starts the month with 1,000 units in inventory at a cost of $12 per unit. They have the…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: How many units must have been completed and transferred if beginning inventory was 79,000 units,…

A: Units started and completed can be calculated by adding up units started and deducting ending…

Q: A firm that sells a single product had a beginning inventory of 7,000 units with a total cost of…

A: As per LIFO method goods that comes in last are sold first, so the ending inventory is valued at the…

Q: The carrying cost curve and ordering cost curve of Bulldogs Inc.'s inventory intersect at 3,50…

A: the concept of economic order quantity for me is applicable where there is ideal order quantity. is…

Q: Danny’s YoYos sells high quality yoyos. The inventory, purchases, and sales for a recent month in…

A: given Danny’s YoYos sells high quality yoyos. The inventory, purchases, and sales for a recent…

Q: Octopus Company provides you with the following information regarding its inventory: Maximum lead…

A: A reorder point (ROP) is the point at which your inventory must be replenished. In other words, it…

Q: Beta Company produces a specialty wood furniture product, and has the following information…

A: EOQ: It stands for economic order quantity. It is the level of units at which total cost is minimum…

Q: Assume Ava Co has the following purchases of inventory during the first month of operations…

A: The calculation of Ending inventory is given below. You may kindly note the following All amounts…

Q: The Grey Sofa Company produces a specialty chairs, and has the following information available…

A: Annual Demand (A) = 10,000 UnitsOrdering cost (O) = $150 per orderCarrying cost :Opportunity cost =…

Q: Cari Furniture has the following information in respect of Coffee tables for 2021: Production…

A: Materials usage budget refers to the budget which is used in planning how much the raw materials…

Q: Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most…

A: Budgeting is the process of estimating expenses to be incurred in near future over estimated income…

Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

Ace Hardware's EOQ is 100 widgets, and it maintains a 50 unit safety stock. Which of the
following is Ace's average inventory?
100 units
60 units
57.07 units
12.25 units
75 units

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Economic order quantity

VIEW

Step 2: Computation of average stock

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Entity A's monthly inventory requirement is 300 units. The ordering cost are P50 per order while the annual cost are expected to be P1.00 per unit. Requirement: 1. Compute the Economic Order Quantity. 2. Prepare the table which the entity can procure inventories in several lots as follows : 3,600 units; 1,800 units, 600 units and 360 units. Use this table Order Size Number of Total Cost to Average Total Cost to Total Cost to Orders Order Inventory Carry Order and Total Cost to Carry
Please avoid solutions in an image format thanks
Oo.8. Subject :- Account
The following information is derived from Fun & Game LLC financial statements. Annual usage of material is 1,000 units, average stock level is 1,400 units, re-order period is 6 – 10 weeks, minimum level is 800 units and normal rate of consumption is 150 units per week. Then calculate the re-order quantity. a. 800 units b. 1,200 units c. 1,000 units d. 400 units
Required information [The following information applies to the questions displayed below.] Iguana, Incorporated, manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $13 per hour. Iguana has the following inventory policies: ⚫ Ending finished goods inventory should be 40 percent of next month's sales. • Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March April May June July August 310 320 370 470 445 495 Variable manufacturing overhead is incurred at a rate of $0.50 per unit produced. Annual fixed manufacturing overhead is estimated to be $4,800 ($400 per month) for expected production of 4,800 units for the year. Selling and administrative expenses are estimated at $500 per month plus $0.50 per unit sold. Iguana, Incorporated, had…
shj.3
Kaizen Furniture has the following information in respect to coffee tables for 2011: Production specifications: Beginning Target Ending Inventory Inventory Direct Materials: Particle board 20,000 b.f. 18,000 b.f. Red oak 25,000 b.f. 22,000 b.f. Finished goods Coffee tables 5,000 units 3,000 units Revenue expected for 2011 are: Selling price $392 per table Units sold 52,000 coffee tables Each coffee table requires 9.00 b.f. of particle board and 10.00 b.f. of red oak. Costs expected for 2011 include: 2010 2011 Particle board (per b.f.) $ 3.90 $ 4.00 Red oak (per b.f.) $ 5.80 $ 6.00 Laminating labor (per hour) $24.00 $25.00 Machining labor (per hour) $29.00 $30.00 Prepare the following budgets for 2011: a. Revenues Budget b. Production Budget (in units) c. Direct Materials Usage Budget
Paint Company has two customers Commercial and Consumer with data as follows: Commercial Consumer Selling Price per unit $15 $15 Units Sold 5,000 8,000 Manufacturing Cost per unit $8.25 $8.25 Number of Purchase Orders 76 212 Number of Deliveries 104 287 Number of Expedited deliveries 357 589 Customer Visits 58 75 Paint Company’s management accountant has gathered the following ABC rate information: ABC Cost Rate Purchase Orders $ 72 per purchase order Deliveries $ 43 per delivery Expedited Deliveries $ 18 per expedited delivery Customer Visits $ 56 per customer visit Using the information in the tables above and allocating indirect support costs using ABC to customers, what is the Operating Income for the Commercial customer?
vaibhav subject-Accounting
a-2
Wayside Corporation has provided the following information about one of its laptop computers: Number of Cost per Units 100 200 300 200 Date 1/1 Beginning Inventory Purchase 5/5 8/10 Purchase 10/15 Purchase Transaction Unit $400 $450 $500 $550 During the year, Wayside sold 750 laptop computers. What was cost of goods sold using the LIFO cost flow assumption?