Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. Arecent accounting statement shows that the inventory investment for raw materials is $4,076, 100, for work-in-processis $6,888,000, and for finished goods is $2,994,000. This year's cost of goods sold will be about $30,108,000. Assumethat there are 52 business weeks per year.a. Express total inventory as weeks of supply.The weeks of supply is weeks. (Enter your response rounded to one decimal place.)27**

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 14PA: Total Pops data show the following information: New machinery will be added in April. This machine...

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A company is spending 70,000 per year for inspecting, 60,000 per year for purchasing, and 56,000 per year for reworking products. What is a good estimate of non-value-added costs? a. 126,000 b. 70,000 c. 56,000 d. 130,000
Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
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?
Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw materials is $3,672,800, for work-in-process is $6,978,000, and for finished goods is $2,675,000. This year's cost of goods sold will be about $24,700,000. Assume that there are 52 business weeks per year. a. Express total inventory as weeks of supply. The weeks of supply is 28.05 weeks. (Enter your response rounded to one decimal place.) b. Express total inventory as inventory turns. The inventory turnover is turns per year. (Enter your response rounded to one decimal place.)
Jack Jones, the materials manager at Precision Enterprises,is beginning to look for ways to reduce inventories. A re-cent accounting statement shows the following inventoryinvestment by category: raw materials, $3,129,500; work-in-process, $6,237,000; and finished goods, $2,686,500.This year’s cost of goods sold will be about $32.5 mil-lion. Assuming 52 business weeks per year, express totalinventory asa. Weeks of supplyb. Inventory turns
The Eagle Machine Company averaged $2 million in inventory last year, and the cost of goods sold was $10 million. Figure shows the breakout of raw materials, work-in-process, and finished goods inventories. The best inventory turnover in the company’s industry is six turns per year. If the company has 52 business weeks per year, how many weeks of supply were held in inventory? What was the inventory turnover? What should the company do?
You are doing some financial analysis research for your work and managed to get (incomplete) data. You will use this data to deduce the required information. You can assume 365 days in a year. a) Alpha Co. reported a cost of goods sold of $64,380.00 and an accounts payable balance of $16,700.00 last year. Compute the average time taken to pay suppliers. Discuss the significance of a longdays’ costs in payables for the firm. b) Bravo Ltd. equity multiplier is 1.93, its total asset turnover is 2.65, and its profit margin is 4.20 percent. Compute the Return on Equity (ROE). Explain the impact on ROE, should the total asset turnover decline next year. c) Charlie Inc. has a profit margin of 7.90 percent, a total asset turnover of 1.54, and a Return on Equity (ROE) of 13.47 percent. Solve for the debt-equity ratio. d) Delta GMBH’s ROE is 8.9 percent. Sales are $2,956,000.00. Total debt ratio is 0.3743. Total debt is $964,000.00. Determine the return on assets (ROA).
Sawtooth Industries uses an economic order quantity (EOQ) model to manage its inventory Investment. The company uses about 25,000 molded plastic assemblies each year. Order costs for these are P150 per order, while carrying costs are about P250 per unit per year. Assume a 365 day year. Sawtooth Industries' economic order quantity (EOQ) for these parts would be units
Balcom Enterprises is planning to introduce a new product that will sell for $120 per unit. Manufacturing cost estimates for 28,000 units for the first year of production are: Direct materials $1,372,000. Direct labor $630,000 (based on $18 per hour × 35,000 hours). Although overhead has not be estimated for the new product, monthly data for Balcom's total production for the last two years has been analyzed using simple linear regression. The analysis results are as follows: Dependent variable Factory overhead costs Independent variable Direct labor hours Intercept $ 136,000 Coefficient on independent variable $ 5.00 Coefficient of correlation 0.959 R2 0.846 Based on this information, what percentage of the variation in overhead costs is explained by the independent variable?
Vikings Inc., is developing a pro forma income statement for the coming year. The chief financial officer estimates that sales will be $150,000,000. If gross profits are historically 36% of sales, what is the expected cost of goods sold (in dollars)? a) $36,000,000 b) $54,000,000 c) $64,000,000 d) $96,000,000 NOTE: In your Excel spreadsheet, all calculations must be included
The president is considering a proposals prepared by members of his staff. For next year, the vice president would like to reduce the unit selling price by 20%. She is certain that this would fill the plant capacity. What profits would be under the vice president's proposal? include both Total and Per Unit columns.

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