Prat Corporation paid $24,800 for an 80% interest in Sage Corporation on January 1, 2002, at which time Sage's stockholders' equity consisted of $15,000 of Common Stock and $6,000 of Retained Earnings. The fair values of Sage Corporation's assets and liabilities were identical to recorded book values when Prat acquired its 80% i
TJ & T Auto purchases a component used in the manufacture of automobile generators directly from the supplier. TJ & T's generator production, which is operated at a constant rate, will require 12,000 components a year. Assume that the ordering costs are $25 per order, the unit cost is $2.50 per component, and annual holding co
Firms like Wheeled Coach spend over half of their sales revenue on purchases. These purchases are often in inventory and represent a huge portion of Wheeled Coach's assets. But, perhaps even more importantly, the ambulances cannot be built if the proper inventory is not on hand when needed. Two important inventory management
(2). The question to solve. A Company purchases wholesale, stores, and then sells at retail four different products used by customers. These four products are Prod1, Prod2, Prod4, and Prod3. The following tabled data is relevant... The annual carrying cost is 12 percent of the unit cost and Company has only 500 square feet
Eurotronics is a European manufacturer of electronic components. During the course of a year, it requires container cargo space on ships leaving Hamburg bound for the United States, Mexico, South America, and Canada. Annually, the company needs 160,000 cubic feet of cargo space. The cost of reserving cargo space is $7,000, an
Skanda Corporation has recently experienced a number of out-of-stock situations because of inadequate inventory levels. Finished goods inventory at the end of Feb, for example, was only 50 units an all-time low. Management desires to implement a policy whereby finished-goods inventory is 20% of the following month's budgeted
Consider Amazon. Initially when the company was established the orders were taken by Amazon online and were filled by Ingram Book and shipped to consumers. After several years around 6 DCs were established in USA. What are the benefits in term of inventory and Amazon use of DCs? Why did they do this? How could they use th
Compute ending inventory using FIFO inventory costing method James Co. has the following data related to an item of inventory Inventory, March 1 200 units @$4.30 Purchase, March 7 700 units @4.40 Purchase, March 16 140 units @$4.50 Inventory, March 31
O Describe elements of inventory management. o Describe the meaning of the category of inventory and explain why it is critical to manage each element. o Explain why accurate forecasting is so important to sales enhancement, customer satisfaction, and cost control.
1. At a recent company meeting, an employee remarks: "We were working so hard to get the income for our bonus this year. Then they got that entire raw material inventory in and even paid for it. We don't need it yet. Why didn't they wait until January?"Will the raw material inventory affect this year's income? Does it matter whe
Conoco Company took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in the physical count were $25,000 of goods purchased from Ajax Corporation, f.o.b. shipping point, and $22,000 of goods sold to Boise Company for $30,000, f.o.b. destination. Both the Ajax purchase and t
Oregon Lumber processes timber into four products. During January, the joint costs of processing were $280,000. There was no inventory at the beginning of the month. Production and sales value information for the month is as follows: Sales Value at Product Board feet Splitoff Point Ending Inventory 2 x 4's 6
Select an inventory management problem that applies to your work or personal life. Describe the organization, the inventory problem it faces, and the expected benefits that are motivating the organization to implement a solution.
Why is proper management of inventory critical to operating efficiency? Why do the goals of inventory management appear to be contradictory? What is the overall goal of inventory management?
Discuss the other advantages of using standard costs.
Taylor Incorporated Inventory Management Background Taylor Incorporated is a manufacturing and sales organization specializing in speed and distance measurement devices?not all of which are manufactured by Taylor Incorporated. One particular distance measurement device produced by Parker Altibelli Industries has just been
The new president has identified many problems areas - one of which is improper inventory control, what are your recommendations and their rationale?
Harvey Industries, a Wisconsin company, specializes in the assembly of high pressures washer systems and in the sales or repair parts for these systems. The products range from small portable high pressure washers to large industrial installations for snow removal from vehicles stored outdoors during the winter months. Typical u
M&B is a local distributor in Ocean Springs, Mississippi, supplying pharmaceuticals and medical supplies to 55 independent drug stores in the Southern region of the US. One of the most popular products M&B distributes is Headache Remedy Formula (HRF) 5123. M&B purchases this generic drug product from a single supplier, the
13 A firm that has implemented JIT had the following transactions: 1. Materials were purchased on account for $40,000. 2. Materials were placed into production. 3. Actual direct labor costs were $6,000. 4. Actual overhead costs were $40,000. 5. Conversion costs applied were $42,000. 6. All work was completed for the
Hi there: Please only attempt to do this if you are certain of the correctness of the outcome! Please attach excel spreadsheets and / or calculations so I can learn how you did this problem. Thank you! I'm attaching this problem.
April Transaction Dr. Cr. 2 Merchandise Inventory 6900 Accounts Payable 6900 4 Accounts Receivable 5500 Sales 5500 Cost of goods sold 4100 Merchandise Inventory 4100 5 Freight in 240 Record payment on freight 240 6 Sales return and allowance 500 Accounts Receivable 500 11 Cash received acc
Use the inventory spreadsheet to perform necessary calculations, but please don't use just the spreadsheet. Explain how you reach your conclusion (for example, explain how various parameters were obtained; and please also explain your conclusion using calculation results from the spreadsheet). Note that the spreadsheet calcul
How can we really define if our inventories are healthy? What are inventory turns?
Company A forecasts August sales of 600 units and September sales of 1000 units. The company maintains ending inventory equal to 125% of next month's sales. September beginning inventory reflects this policy. What is September's required production?
What is the Economic Order Quantity technique and what are the basic assumptions the model formula follows? What are some different companies that could benefit from using this type of inventory management and why?
In the previous task, you developed some tentative ideas about what you expected to find when you arrived in Oregon. Here is some more information you have obtained from management: Facilities P and T both claim that parts from the S facility sometimes do not arrive on time, causing costly production shut-downs which periodi
29. Miller Inc. is a wholesaler of office supplies. The activity for Model III calculators during August is shown below: Balance/ Date Transaction Units Cost August 1 Inventory 2,000 $36.00 7 Purchase 3,000 37.20 12 Sales 3,600 21 Purchase 4,800 38.00 22 Sales 3,800 29 Purchase 1,600 38.60 If Mil
Inventory Control 1)What are costs associated with inventory? 2)Why is controlling turnover in the inventory important? 3) How can improvements in inventory management impact profitability?
1. How would you weigh risk against return? Is there a point when return makes risk invalid? Explain your answer well. 2. When is insurance beneficial? Is insurance ever not beneficial? Explain your answer very well. 3. Where would you begin an evaluation of an internal control system? Please explain why? 4. What are so
Vasquez Ltd. is a retailer operating in Edmonton, Alberta. Vasquez uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory; the inventory is not/ damaged. Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the followin