Answered: $60.02 per batch $17.08 per customer…

Business

Accounting

$60.02 per batch $17.08 per customer order $ 7.31 per assembly hour orders

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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repruary 6,300 6,100 5,500 March April May Wesley's ending finished goods inventory policy is 25 percent of the next month's sales. Suppose each handisaw takes approximately 0.60 hours to manufacture, and Wesley pays an average labor wage of $26 per hour. Each handisaw requires a plastic housing that Wesley purchases from a supplier at a cost of $6.00 each. The company has an ending direct materials inventory policy of 20 percent of the following month's production requirements. Materials other than the housing unit total $4.50 per handisaw. Manufacturing overhead for this product includes $72,000 annual fixed overhead (based on production of 27,000 units) and $1.20 per unit variable manufacturing overhead. Wesley's selling expenses are 7 percent of sales dollars, and administrative expenses are fixed at $18,000 per month. Required: Compute the following for the first quarter: (Round your intermediate calculations to nearest whole dollar.) January February March 1st Quarter total 1.…
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Question 2 Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she is ordering 230. Daily demand for these calculators is 5. The cost to re-order this item is estimated at $44, while the annual inventory holding cost is 22%. Orders are received two working days after an order is placed. The office operates 52 weeks per year, 5 days per week Determine the reorder point using EOQ. Greater than or equal to 43 and less than or equal to 49 Greater than or equal to 431 and less than or equal to 443 Greater than or equal to 2053 and less than or equal to 2064 Greater than or equal to 6 and less than or equal to 25 4 pts < Previous Next VIV
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question 2 The following information pertains to Monroe Company: Month Sales Purchases January $62,000 $33,000 February $84,000 $42,000 March $101,000 $61,000 Cash is collected from customers in the following manner: Month of the sale: 65%, with the remainder the month after. 40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 35% of sales. Other operating costs are $38,000 per month (including $10,000 of depreciation). Both of these are paid in the month incurred. The cash balance on March 1 is $8,000. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. How much cash will be disbursed in total in March?
Ordering and Carrying Costs Ottis, Inc., uses 683,910 plastic housing units each year in its production of paper shredders. The cost of placing an order is $29. The cost of holding one unit of inventory for one year is $20. Currently, Ottis places 149 orders of 4,590 plastic housing units per year. Required: 1. Compute the annual ordering cost. $fill in the blank 1 2. Compute the annual carrying cost. $fill in the blank 2 3. Compute the cost of Ottis’s current inventory policy. $fill in the blank 3 Is this the minimum cost?
PROBLEM #2 Novex Company keeps careful track of the time to complete customer orders. During the most recent quarter, the following average times were recorded for each unit or order: Days . 17.0 Wait time..... Inspection time........0.4 Process time ..........2.0 Move time ..... Queue time.... .5.0 Goods are shipped as soon as production is completed. ..0.6 Required: 1. Compute the throughput time. 2. Compute the manufacturing cycle efficiency (MCE). 3. What percentage of the production time is spent in non-value-added activities? 4. Compute the delivery cycle time.
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November December January February March Sales $9,500 $10,000 $11,000 $12,100 $13,310 All sales are for credit, with 80% collected the following month and 20% collected during the second month. Purchases of raw materials equals 60% of sales. Purchases are made in the month of the sale, but suppliers are paid in the month following the purchase. Wages are $1,000 per month, rent is $1,500, taxes are $500, and a $1,000 loan payment is due in February. Monthly interest expense is $200. What are the net cash flows in January, February, and March?