Calculate the EOQ for exercise 8 if annual demand is 10,000 units,inventory storage costs average 20 percent, unit price is $50, and orderingcosts are $30.

Q: The ordering cost for a certain product is $8 per order and the holding cost is $1 per year. The…

A: Ordering Cost :— It is the expenses incurred by company for ordering of product.    Holding cost :—…

Q: Target ROI is 20% Invested Capital is $518,556 Full Cost per unit $1,024 Expected sales volume is…

A: Formula: ROI=Net ProfitInvested capital×100 Net Profit=Total Sales-Total Cost

Q: n/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false Lean…

A: Answer Total conversion cost per production hour is  = $70.5 ( budgeted conversion cost / total…

Q: The production department of Zan Corporation has submitted the following forecast of units to be…

A: 1 and 2Estimated grams of raw materials that need to be purchased and cost of raw materials to be…

Q: Based on a predicted level of production and sales of 30,000 units, a company anticipates total…

A: Contribution margin is defined as what revenue is left with the firm after deduction of its variable…

Q: XYZ Inc. sells 3 products: X, Y and Z. Budgeted Fixed Cost for next period totals P106,500. Other…

A: Formula: Contribution margin = selling price - variable cost. Deduction of variable cost from…

Q: Assume that a company's planned level of activity is 1,000 hours and its actual level of activity is…

A: Revenue for higher level of activity is likely to be higher because of the tendency of getting more…

Q: Wet Mop Incorporated expects to sell 10,000 mops. Fixed costs (for the year) are expected to be…

A: There are two type of costs being incurred in the business. One is fixed costs and other is variable…

Q: budget the labor expense for a forecasted sales level of $200,000 from the following data…

A: historical sales level $100,000 Historical semi variable $30,000 (tc $30,000=vc$25,000+$5,000)

Q: Fogel Company expects to produce and sell 116,000 units for the period. The company's flexible…

A: The flexible budget is prepared on the basis of standard rates and actual production data. The…

Q: K Base Machinery showed the following operating budget for the next year. Complete parts (a) through…

A: Contribution margin: = Sales - Variable cost   Contribution Rate: =(Contribution / Sales) * 100

Q: product

A: Sales revenue is the total amount earned by a company by selling all the units. Selling price per…

Q: The production department of Zan Corporation has submitted the following forecast of units to be…

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

Q: The production manager of Rordan Corporation has submitted the following quarterly production…

A: Notes : Management prepares budget in order to estimate future profit and loss of the business.…

Q: 11. The production department of Priston Company has submitted the following forecast of units to be…

A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…

Q: PROVIDE Answer with calculation

A: Step 1 - Determine February's desired ending inventory.Ending inventory for February should be 80%…

Q: Based on a predicted level of production and sales of 22,000 units, a company anticipates total…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.