1. If the economic order quantity model is used, the economic lot size is a. 1,500 unitsb. 2,250 unitsc. 2,750 unitsd. None of these 2. At present, the companies total annual inventory cost is a. 7,500b. 16,875c. 22,500d. 24,375 Problem 10. At the present, Roman Company produces 2,250 units of Product X per productionrun, for a total of 15 production runs per year. The company is considering to use the economicorder quantity model to determine the economic lot size and the number of production runs thatwill minimise the total inventory carrying cost and set up cost for Product X. The followinginformation pertains to Roman's flagship Product X:Annual demand33,750 unitsP15Annual cost to hold one unit of Product XP500Costs to initiate a product runBeginning inventoryZero

Economic order quantity model shows the number of units to be order in one order so as to ensure…

em 10. At the present, Roman Company produces 2,250 units of Product X per production r a total of 15 production runs per year. The company is considering to use the economic quantity model to determine the economic lot size and the number of production runs that inimise the total inventory carrying cost and set up cost for Product X. The following ation pertains to Roman's flagship Product X: Annual demand 33,750 units P15 Annual cost to hold one unit of Product X Costs to initiate a product run Beginning inventory P500 Zero

em 10. At the present, Roman Company produces 2,250 units of Product X per production r a total of 15 production runs per year. The company is considering to use the economic quantity model to determine the economic lot size and the number of production runs that inimise the total inventory carrying cost and set up cost for Product X. The following ation pertains to Roman's flagship Product X: Annual demand 33,750 units P15 Annual cost to hold one unit of Product X Costs to initiate a product run Beginning inventory P500 Zero

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: Snyder’s total cost of goods available for sale would be:a. $2,000.b. $7,200.c. $8,000.d. $9,200.

A: The cost of goods available for sales are the sum total of beginning inventory Company has for sale…

Q: The inventory records for Radford Company reflected the following Beginning inventory on May 1 100…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.Under…

Q: 1. 6 points Calculate the goods available for sale for Atlantis Company, in units and in dollar…

A: Step 1:

Q: Please true answer

A: Step 1: Introduction to the Generally Accepted Accounting PrinciplesThe Generally Accepted…

Q: The inventory records for Radford Company reflected the following Beginning inventory on May 1 1,600…

A: Cost of goods sold is the amount of cost which is incurred on the making of the goods. It includes…

Q: Use the following information: Net sales $ 180,000 124,000

A: Gross profit is calculated as difference between sales and cost of goods sold. Gross profit = Sales…

Q: Answer is complete and correct. Item %23 Beginning Unit Ending Unit Average Unit Annual Unit Sales…

A: Average inventory turnover: In accounting, the average inventory turnover ratio is the computation…

Q: 2) Compute days in inventory for each company. (Round answers to O decimal plac Wildhorse Company…

A: Inventory turnover is the average number of times a company sells and replaces its inventory in a…

Q: Splish Company is a multiproduct firm. Presented below is information concerning one of its…

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

Q: a. Compute the inventory tumover for each year using the formula Sales/Inventory. (Round your…

A: Inventory turnover ratio tells us how many times a company has sold and replenished inventory in a…

Q: I want the correct answer

A: According to the lower of cost or market rule, inventory is recorded at the lower of either its…

Q: K The following data was extracted from the records of Today Company: Sales revenue 600 units at $55…

A: Gross Profit = Sales - Cost of Goods soldIn case of FIFO method the opening inventory and units…

Q: ($) ('$) Unit Total Balance Cost in Units 50 Date Explanation Units Cost Jun-01Beginning inventory…

A: FIFO: COGS = 50 units x $1 + 10 units x $1.2 + 40 units x $1.2 + 110 units x $1.4 = $50 + $12 + $48…

Q: Zara retailer has an inventory turnover in the amount of 2.1, it’s average inventory is 15,500…

A: Inventory turnover ratio is the ratio between the cost of goods sold and average inventory.

Q: get solutions

A: To get the goods available for sale: In Units Total goods available for sale in units = Beginning…

Q: The following data are for the Portet Corporation, which sells just one product: Units Unit Cost…

A: Periodic Inventory System is an inventory method where the inventory is counted on periodic basis…

Q: Strand Retail Corp had the following info: Beg Inventory 2,500 units @ $40/each Purchased 4,000…

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

Q: Given the following: Number purchased Cost per unit Total January 1 inventory 30 $ 5 $…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sold…

Q: Problem 13-5A (Algo) Comparative ratio analysis LO P3 [The following information applies to the…

A: Step 1: Inventory Turnover can be calculated by dividing the Cost of Goods Sold by the Average…

Q: Consider the following transactions for DeTrees Company for the month shown in chronological order:…

A: The weighted average cost per unit is calculated as total cost divided by no. Of units.

Q: iven the following data, calculate the cost of ending inventory using the average cost method.…

A: Inventory valuation: For calculation of accurate net income, ascertainment of accurate…

Q: he following data are available for Sellco for the fiscal year ended on January 31, 2020:…

A: Calculation of COGS and ending inventory: FIFO COGS= (500*4)+(600*5)+(500*6) =2000+ 3000 +3000 =$…

Q: sume a company had the following inventory information: eginning Inventory: 90 units @ $4.00 cost…

A: Under average cost method, average cost per unit is arrived at by dividing Total cost of units…

Q: ('$) ('$) Unit Total Balance Date Explanation Units Cost Cost in…

Question

1. If the economic order quantity model is used, the economic lot size is

a. 1,500 units

b. 2,250 units

c. 2,750 units

d. None of these

2. At present, the companies total annual inventory cost is

a. 7,500

b. 16,875

c. 22,500

d. 24,375

Problem 10. At the present, Roman Company produces 2,250 units of Product X per production
run, for a total of 15 production runs per year. The company is considering to use the economic
order quantity model to determine the economic lot size and the number of production runs that
will minimise the total inventory carrying cost and set up cost for Product X. The following
information pertains to Roman's flagship Product X:
Annual demand
33,750 units
P15
Annual cost to hold one unit of Product X
P500
Costs to initiate a product run
Beginning inventory
Zero

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

VIEW

Step 2

VIEW

Step 3

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

Financial Reporting in Hyperinflationary Economies

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

3
What is the weighted average unit cost using the following information? Beginning Inventory 11/1: 1,000 units at $25 per unit Purchase 11/10: 2,500 units at $30 per unit Purchase 11/15: 1,500 units at $20 per unit Sold 11/25: 2,500 units for $50 each $25.00 $26.00 $30.00 $36.00
20. Company sold inventory fo $300,000 terms 2/10, n/30. Cost of goods sold was $152,000, How much sales revenue will they report form the sale assuming the company records the net amount?
[The following information applies to the questions displayed below.] Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 15 units for $23 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 10 units @ $9.00 cost 20 units @ $15.00 cost 15 units @ $17.00 cost Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. Perpetual LIFO: Goods purchased Cost of Goods Sold Cost of Goods # of Date Cost per Cost per Cost of ( unit # of units Available for units unit Sol Sale sold December 7 10 at $ 9.00 $ 90.00 20 at $ 15.00 $ 300.00 December 14 Total December 14 15 at $ 23.00 = December 15 Total December 15 15 at $ 17.00 $ 255.00 %3D December 21 Totals
Given the following: Numberpurchased Costper unit Total January 1 inventory 32 $ 4 $ 128 April 1 52 6 312 June 1 42 7 294 November 1 47 8 376 173 $ 1,110 a. Calculate the cost of ending inventory using the FIFO (ending inventory shows 53 units). b. Calculate the cost of goods sold using the FIFO (ending inventory shows 53 units).