The optimum order quantity using EOQ model.

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Answer 1

Question

Chapter 20, Problem 20.28P

1.

To determine

To compute: The optimum order quantity using EOQ model.

2.

a.

To determine

To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.

b.

To determine

To compute: The annual relevant total cost of ordering and carrying inventory.

3.

To determine

To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.

4.

To determine

To explain: The cost impact on the company of excluding opportunity cost of carrying inventory when making EOQ decisions. Explain the reason of excluding the opportunity cost of carrying inventory when evaluating manager performance and also specify method to company to encourage manger to make decision more congruent with the goal of reducing total inventory cost.

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General Accounting question

Wilson Corporation acquires Greatbatch Company for $80 million cash in a merger. The balance sheets of both companies at the date of acquisition are as follows: Balance Sheet (in millions) Wilson Greatbatch Current assets $96 $8 Property and equipment 800 144 Intangibles 32 4.8 Total assets $928 $156.8 Current liabilities $40 $3.2 Long-term debt 640 104 Capital stock 80 19.2 Retained earnings 192 24 Accumulated other comprehensive income (loss) (24) 6.4 Total liabilities and equity $928 $156.8 Greatbatch's property and equipment is overvalued by $48 million, its reported intangibles are undervalued by $32 million, and it has unreported intangibles, in the form of customer databases and marketing agreements, valued at $11.2 million. Required Prepare Wilson's balance sheet immediately following the merger. Use a negative sign with your answer for AOCI if the balance is a loss.

Not use ai solution given correct answer

Answer 2

Question

Chapter 20, Problem 20.28P

1.

To determine

To compute: The optimum order quantity using EOQ model.

2.

a.

To determine

To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.

b.

To determine

To compute: The annual relevant total cost of ordering and carrying inventory.

3.

To determine

To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.

4.

To determine

To explain: The cost impact on the company of excluding opportunity cost of carrying inventory when making EOQ decisions. Explain the reason of excluding the opportunity cost of carrying inventory when evaluating manager performance and also specify method to company to encourage manger to make decision more congruent with the goal of reducing total inventory cost.

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Answer 3

Question

Chapter 20, Problem 20.28P

1.

To determine

To compute: The optimum order quantity using EOQ model.

2.

a.

To determine

To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.

b.

To determine

To compute: The annual relevant total cost of ordering and carrying inventory.

3.

To determine

To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.

4.

To determine

To explain: The cost impact on the company of excluding opportunity cost of carrying inventory when making EOQ decisions. Explain the reason of excluding the opportunity cost of carrying inventory when evaluating manager performance and also specify method to company to encourage manger to make decision more congruent with the goal of reducing total inventory cost.

Expert Solution & Answer

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Answer 4

Question

Chapter 20, Problem 20.28P

1.

To determine

To compute: The optimum order quantity using EOQ model.

2.

a.

To determine

To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.

b.

To determine

To compute: The annual relevant total cost of ordering and carrying inventory.

3.

To determine

To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.

4.

To determine

To explain: The cost impact on the company of excluding opportunity cost of carrying inventory when making EOQ decisions. Explain the reason of excluding the opportunity cost of carrying inventory when evaluating manager performance and also specify method to company to encourage manger to make decision more congruent with the goal of reducing total inventory cost.

Expert Solution & Answer

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Answer 5

Chapter 20, Problem 20.28P

1.

To determine

To compute: The optimum order quantity using EOQ model.

2.

a.

To determine

To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.

b.

To determine

To compute: The annual relevant total cost of ordering and carrying inventory.

3.

To determine

To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.

4.

To determine

To explain: The cost impact on the company of excluding opportunity cost of carrying inventory when making EOQ decisions. Explain the reason of excluding the opportunity cost of carrying inventory when evaluating manager performance and also specify method to company to encourage manger to make decision more congruent with the goal of reducing total inventory cost.

Answer 6

Chapter 20, Problem 20.28P

1.

To determine

To compute: The optimum order quantity using EOQ model.

Answer 7

Chapter 20, Problem 20.28P

1.

To determine

To compute: The optimum order quantity using EOQ model.

Answer 8

2.

a.

To determine

To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.

Answer 9

2.

a.

To determine

To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.

Answer 10

b.

To determine

To compute: The annual relevant total cost of ordering and carrying inventory.

Answer 11

b.

To determine

To compute: The annual relevant total cost of ordering and carrying inventory.

Answer 12

3.

To determine

To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.

Answer 13

3.

To determine

To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.

Answer 14

4.

To determine

To explain: The cost impact on the company of excluding opportunity cost of carrying inventory when making EOQ decisions. Explain the reason of excluding the opportunity cost of carrying inventory when evaluating manager performance and also specify method to company to encourage manger to make decision more congruent with the goal of reducing total inventory cost.

Answer 15

4.

To determine

To explain: The cost impact on the company of excluding opportunity cost of carrying inventory when making EOQ decisions. Explain the reason of excluding the opportunity cost of carrying inventory when evaluating manager performance and also specify method to company to encourage manger to make decision more congruent with the goal of reducing total inventory cost.

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

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The optimum order quantity using EOQ model.

To compute: The optimum order quantity using EOQ model.

To compute: The number of order per year, and b. The annual relevant total cost of ordering and carrying inventory.

To compute: The annual relevant total cost of ordering and carrying inventory.

To compute: The optimum order quantity using EOQ model, the annual relevant total cost of ordering and carrying inventory.

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Chapter 20 Solutions