Please provide solution QUESTION: 67AT THE BEGINNING OF 2015, ENGLAND DRESSES HAS ANINVENTORY OF $85,000. HOWEVER, MANAGEMENT WANTSTO REDUCE THE AMOUNT OF INVENTORY ON HAND TO$45,000 AT DECEMBER 31. IF NET SALES FOR 2015 AREFORECAST AT $200,000 AND THE GROSS PROFIT RATE ISEXPECTED TO BE 20%, COMPUTE THE COST OF THEMERCHANDISE WHICH MANAGEMENT SHOULD EXPECT TOPURCHASE DURING 2015.

Step 1:Inventory at the beginning of 2015 is $85,000Inventory at December 31 is $45,000Net sales is…

Answered: QUESTION: 67 AT THE BEGINNING OF 2015,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 57BE

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Activities/Assessments: Activity 9 Solve the following EOQ model problems: 1. Each year, Y Company purchases 20,000 units of an item that costs P 640 per unit. The cost of placing an order is P 480, and the cost to hold the item in inventory for one year is P 150. a. Determine the EOQ. b. What is the average inventory level, assuming that the minimum inventory level is zero? c. Determine the total annual ordering cost and the total annual holding cost for the item if the EOQ is used. 2. A toy manufacturer uses approximately 32,000 silicon chips annually. The chips are used at a steady rate during the 240 days the plant operates. Annual holding cost is P27 per chip and ordering cost is P1,080. Lead time = 1 week. a. Find the EOQ. b. Find the reorder point. c. What would be your ordering policy for this item? d. Find the total annual cost of ordering and carrying silicon chips. 3. A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing an order…
Please help me answer c and d
1. A markup of 25 percent on cost is equivalent to what markup on selling price? (rounded) choices: 33 percent 25 percent 20 percent 15 percent 2. Tretorn Company began operations in 2018. During the first two years of operations, Tretorn made undiscovered errors in taking its year-end inventories that understated 2018 ending inventory by P40,000 and overstated 2019 ending inventory by P50,000. The combined effect of these errors on reported income for the year 2018, 2019 and 2020 respectively is choices: P40,000 understated; P90,000 overstated and P50,000 understated P40,000 understated; P50,000 overstated and not affected P40,000 understated; P10,000 overstated and not affected P40,000 overstated; P50,000 understated and P10,000 overstated 3. Hardy Company is a wholesale electronics distributor. On December 31, 2020, it prepared the following partial income statement: Inventory, January 1 P 200,000; Net Purchases…
Assume the following data about actual prices, costs, and volume for Balmoral, Inc. for 2019: Selling price Variable manufacturing costs Fixed manufacturing costs Marketing and administrative costs (fixed and variable combined) $5 per unit $3 per unit $100,000 for 2019 $30,000 for 2019 Sales volume 100,000 units for 2019 120,000 units for 2019 Production volume There were no beginning inventories. What is the inventory cost at the end of 2019 under: (1) absorption costing $_ (2) variable costing S
1. In presenting inventory on balance sheet December 31, 2021, the unit cost under absorption costing is? 2. What is the net income for 2021 under variable costing?
entory Management - Spring21 Time left 1:06:07 on A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and it costs OMR 2500 per unit to purchased. The cost of reordering is OMR 50 each order. The annual holding cost is OMR 660 per unit. Which economic order quantity policy, either round-up or round-down for inventory ordering to be used here to minimize total The corresponding order quantity will be ventory cost per year? of a. None is correct O b. 12 O C. 13 d. 14 O e. 15 FINISH ATTEMPT ...
QUESTION 5 A). What are inventories? Why are they important to manufacturing companies? B). What is the difference between FIFO and LIFO? C). Given the following data, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $6 per unit per quarter, what is the annual carrying cost? Opening and ending inventory are zero. Quarter 1 Quarter 2| Quarter 3 Quarter 4 Totals $ Forecast Demand 5000 7000 8500 9500 Production Ending Inventory Average Inventory Inventory Cost If the company always carries 100 units of safety stock, what is the annual cost of carrying it? D) Perform an ABC analysis on the following set of products. Annual Item Demand Unit Cost A211 800 $9 B390 100 $90 C003 450 $6 D100 400 $100 E707 85 $2,000 F660 250 $320 G473 500 $75 H921 100 $75
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