Develop and analyze this material to understand every detail and be ready for what continues. I. Presented below is financial information for two different companies. New York Florida Company Company Sales 90,000
The CEO heard about your lunchtime discussion with the supervisors and managers when metrics were discussed. He would like you to help him prepare a PowerPoint presentation that he could use at the next board of directors meeting to link the day-to-day new metrics you suggested using to the bigger picture metrics that CEO's, CFO
Purchases budget - analytical: Gemstone, Ltd. is a retail jeweller. Most of the firm's business is in jewellery and watches. The firm's average gross profit ratio for jewellery and watches is 80% and 40%, respectively. The sales forecast for the next two months for each product category is as follows;
1.Why do retailers perform extensive inventories at the end of a fiscal year. Why do retailers mark down items for quick sale before the end of a budgeting period? Is this wise? 2. Implementing a merchandising plan is an eight-step process beginning with gathering information and ending with a re-evaluation process. What is t
Please see attached. There are two problems, they are under sheet 1 and sheet 2. E9-7 (Relative Sales Value Method) Larsen Realty E8-9 (Periodic versus Perpetual Entries) Chippewas
The CEO of the organization has declared "war" on excessive inventory. Operational people within the organization want more inventory available to produce the products for the customer. The financial analysts agree with the CEO. - Why are there 2 viewpoints, and why do they vary? - What are the drawbacks to excess inventory
A company's order fulfillment manager suggests that the company increase their inventory levels to make sure there is enough inventory to fulfill all customer orders. As the controller of the company, would you agree or disagree with the fulfillment managers suggestion? Why or why not? If you disagree, what alternatives woul
The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just completed year. Sales......................................................................................... $870 Purchases of raw materials............................................................
Kepler's Fudge Factory had the following information available for the month of September: Beginning Ending Raw materials inventory $41,000 $21,000 Work in process inventory $26,000 $36,000 Finished-goods inventory $31,000 $21,000 Raw material purchased $98,000 Direct labor (2,000 hrs. @9)
The Everglades Marine Company has the followng inventory balances at the beginning of January: Raw Materials Inventory: $71,568 Work-in-Process Inventory: $109,788 Finished Goods Inventory: $92,757 During January, the Everglades Marine Company incurred $106,806 in overhead costs and $193,200 in direct labor cost
Company A's demand is uniform throughout the year and totals 18,000 units per year. Ordering costs total $38 per order. The annual holding cost rate is 26% of the value of the inventory. The per-unit cost of inventory is $12. Company B's demand is uniform throughout the year and totals 15,000 units per year. The production s
Hi, I need some assistance discussing the following questions: - What would be three different inventory types that a dry cleaner could use? - What would be an average value of total inventory maintained by a dry cleaner and how would this compare to the annual gross income? - What are the key issues or problems with invento
Your boss gave you the following info, compute direct materials used: Purchase of direct materials $6,400 Freight-in 200 Property taxes 900 Ending Inventory of direct materials 1,500 Beginning Inventory of direct materials 4,000
2. A store has collected the following information on one of its products: Demand = 6,760 units/year Standard deviation of weekly demand = 18 units Ordering costs = $40/order Holding costs = $2/unit/year Cycle-service level = 90% (z for 90% = 1.28) Lead-time = 3 weeks Number of weeks per year = 52 weeks a. If the firm
A company places purchase orders to buy two week's supply at a time. Oscar Chen has joined as the director of finance and has passed an order which says that one month's supply should be purchase at a time. Which of the following is correct assuming all other variables remain unchanged? a) The annual cost of carrying inventor
Inventory Management: Calculating Safety Stock, Re-Order point, EOQ, Average Inventory, and Total Inventory Cost
The average demand faced by a retailer in the past is 200 units/day with a standard deviation of daily demand of 15 units/day. The fixed cost to order is $1,000, and the product cost is $50 per units. The daily holding cost is 20% of the product cost. The lead time is 6 days. Given that the retailer wishes to maintain a servi
Vegas Company's ending Goods in Process Inventory account consists of 4,500 units of partially completed product, and its Finished Goods Inventory account consists of 11,700 units of product. The factory manager determines that the Goods in Process Inventory includes a direct materials cost of $10 per unit and direct labor c
Following are accountig records for xx company Raw material purchases.......350,000 Direct labour....508,000 Indirect labour....218,000 Selling and admin salaries....266,000 Building depriciation...160,000 Other selling and admin exp....380,000 Other factory costs...688,000 Sales revenue (260$ per unit).....2,990,000 75
Executing and recording manufacturing transactions and safeguarding inventories involve the following: 1. Initiating production: Planning and controlling production 2. Production of Inventory: Issuing raw materials Processing goods in production Transferring completed work to finished goods Protecting inventorie
One of the problems many companies face today is to what depth inventory should be. Basically, the question is: do we inventory major components, individual parts, smaller items? So, at some point, we would have to make a decision to keep things in inventory - or perhaps outsource to a JIT vendor. So, to what level do you th
1. The following forecasted sales pertain to Isaac Company: Month Sales September $180,000 October 200,000 November 160,000 December 140,000 Collection pattern: 55 percent in month of sale 45 percent in month following sale Accounts Receivable (August 31) $48,000 Finished Goods Inventory (August 31) 19,000 Isaa
Inventory management is knowing what you have on hand, where it is used within the process, and how many finished products it will result it
Inventory management is knowing what you have on hand, where it is used within the process, and how many finished products it will result it. (Barcodes, Inc. 2012) In order to balance inventory, you have to pay close attention to incoming and outgoing supplies. Another factor in inventory management is knowing the turnaround
The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just-completed year: Sales................................................................................. $910 Purchases of raw materials................................................ $22
Research inventory management. Explain, based on your research, how planning inventory is both an art and a science. In addition, suppose you are trying to reduce inventory in your company, without negatively affecting customer service. What actions might you be able to take to accomplish this task?
Question 1: You are in charge of setting up an inventory control system in a bookstore. The books in question have an ongoing demand pattern, with some random number of books being sold each day. This demand pattern is expected to continue for quite some time. When we need more copies of a particular title, we can order them and
There are several factors why firms may choose to hold inventories. Do you think holding inventories is a form of inefficiency?
The production budget for Zink Company shows units to be produced as follows: July, 620; August, 680; September, 540. Each unit produced requires two hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, Augu
Explain what should happen to the order quantity in an order point (Q,R) system, and the time between orders in a periodic review (P,T) system, as the fixed cost per order (S) increases relative to other cost parameters. Explain the effect this will have on average inventory levels.
13) Designated market value A. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin. B. may sometimes exceed net realizable value. C. should always be equal to net realizable value. D. should always be equal to net realizable value less a normal prof
A company produces and sells pillows. It expects to sell 10,000 pillows in the year 2012 and had 1,000 pillows in finished goods inventory at the end of 2011. Candace would like to complete operations in the year 2012 with at least 1,250 completed pillows in inventory. There is no ending work-in-process inventory. The pillows se