Question 9 This is a 2 part question. Make sure you answer both parts. Part 1: Use the following information to calculate inventory carrying cost percentage at the warehouse. Part 2: If there are any costs you did not use in your Part 1 calculation, explain why you did not use them. Direct variable manufactured cost of inventory $850,000 Variable cost of transportation from warehouse to retail store $35,000 Variable cost of labor to move product into warehouse $5,000 Fixed warehouse overhead cost $10,000 Cost of money 9% Taxes on inventory at warehouse $4,000 Insurance on warehoused inventory $1,500 Inventory shrinkage at warehouse $8,000
Question 9 This is a 2 part question. Make sure you answer both parts. Part 1: Use the following information to calculate inventory carrying cost percentage at the warehouse. Part 2: If there are any costs you did not use in your Part 1 calculation, explain why you did not use them. Direct variable manufactured cost of inventory $850,000 Variable cost of transportation from warehouse to retail store $35,000 Variable cost of labor to move product into warehouse $5,000 Fixed warehouse overhead cost $10,000 Cost of money 9% Taxes on inventory at warehouse $4,000 Insurance on warehoused inventory $1,500 Inventory shrinkage at warehouse $8,000
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 13P: Webster Company uses backflush costing to account for its manufacturing costs. The trigger points...
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![Question 9
This is a 2 part question. Make sure you answer both parts.
Part 1: Use the following information to calculate inventory carrying cost percentage at the warehouse.
Part 2: If there are any costs you did not use in your Part 1 calculation, explain why you did not use them.
Direct variable manufactured cost of inventory
$850,000
Variable cost of transportation from warehouse to retail store
$35,000
Variable cost of labor to move product into warehouse
$5,000
Fixed warehouse overhead cost
$10,000
Cost of money
9%
Taxes on inventory at warehouse
$4,000
Insurance on warehoused inventory
$1,500
Inventory shrinkage at warehouse
$8,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3222ee7-6e7a-45c1-8fcc-b46cd2232bfd%2Fa69b7426-940b-441e-b76f-ffba3afc66c6%2Fbulxpyoc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 9
This is a 2 part question. Make sure you answer both parts.
Part 1: Use the following information to calculate inventory carrying cost percentage at the warehouse.
Part 2: If there are any costs you did not use in your Part 1 calculation, explain why you did not use them.
Direct variable manufactured cost of inventory
$850,000
Variable cost of transportation from warehouse to retail store
$35,000
Variable cost of labor to move product into warehouse
$5,000
Fixed warehouse overhead cost
$10,000
Cost of money
9%
Taxes on inventory at warehouse
$4,000
Insurance on warehoused inventory
$1,500
Inventory shrinkage at warehouse
$8,000
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