Share
Explore BrainMass

Inventory Management

John Spencer Corporation

John Spencer Corporation Comparative Income Statement For the Years Ended December 31 2009 2008 Sales $530,000 $448,000 Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372,000 338,000 Gross margin on sales . . . . . . . . . . . . . . .

Operations of the Good Time Clock Company for 2004:

The partial information that follows pertains to the operations of Good Time Clock Company for 2004: Raw materials inventory, January 1, 2004 $ 5,000 Raw materials inventory, December 31, 2004 $ 2,000 Direct labor charged to production during 2004 $18,000 Factory overhead costs incurred during 2004

Executive summary for Inventory Management and Control at Riordan

All I am needing is an excutive summary for this assignment using Inventory Management and Control at Riordan Manufacturing . Begin work on Service Request SR-rm-001. ?Identify specific systems within Riordan's inventory and manufacturing processes that could be improved. ?Begin defining the business requirements of the s

Decline in Inventory Turnover

A firm is conducting an analysis of trends over tiem and discovers that its inventory turnover has declined. This may be due to: a. an increase in sales b. an increase in cost of goods sold c. an increase ininventory purchases d. a decrease in inventory purchases

Inventory Control Models

Northern Distributors is a wholesale organization that supplies retail stores with lawn care and household products. One building is used to store Neverfail lawn mowers. The building is 25 feet wide by 40 feet deep by 8 feet high. Anna Oldham, manager of hte warehouse, estimates that about 60% of the warehouse can be used to

Inventoriable Costs and Transactions

(Inventoriable Costs) Assume that in an annual audit of Harlowe Inc. at December 31, 2007, you find the following transactions near the closing date. 1. A special machine, fabricated to order for a customer, was finished and specifically segregated in the back part of the shipping room on December 31, 2007. The customer was b

Damron Company Budget of Inventory Purchases

The Damron Company is preparing its budget of purchases of inventory. The policy of the company is to maintain the equal final inventory to 25% following of the cost of the sold sales of the following month. For October the budgeted cost of the sold sales is of $ 200,000. Required: July

Inventory management concerns

In approximately 500 words, please answer the following four questions concerning inventory management: 1. Why would a company consider holding high levels of finished goods inventory? What are the advantages and disadvantages? 2. Why would a company consider holding low levels of finished goods inventory? What are the a

Accounting : Income Statements, Balance Sheets and Inventory Turnover

XYZ corporation reports the following data on their IS and BS: Sales: 1,000,000.00 CoGS: 500,000.00 Gross Margin: 500,000.00 SG&A: 250,000 EBIT: 250,000 Interest: 150,000 EBT: 100,000 Taxes: 30,000 Net Income: 70,000 Balance Sheet (Simplified) Assets Inventory: 1,000,000 Other Current Assets: 2,000,000 Lo

Inventory outstanding for Ohio Valley Homecare Suppliers

Ohio valley homecare suppliers, Inc, had $20 million in saldes in 2004. Its cost of goods sold was $8 million and its average inventory balance was $2,000,000 The average number of days inventory outstanding for Ohio Valley Homecare Suppliers (OVHS) in 2004 is a. 30 days b. 73 days c. 91.10 days d. 91.25 days e. 8

Inventory and Turnover Ratio

Ohio Valley Homecare suppliers, Inc, had $20 million in sales in 2004. Its cost of goods sold was $8 million and its average inventory balance was $2,000,000 The inventory turnover ratio for Ohio Valley Homecare Suppliers (OVHS) in 2004 is a. 2x b. 3x c. 4x d. 5x 3. 6x The average days of inventory in the industry

Inventory and Financial Ratios

16. Suppose your firm receives a $5million order on the last day of the year. You fill the order with $2 million worth of inventory. The customer picks up the entire order the same day and pays $1 million upfront in cash; you also issue a bill for the customer to pay the remaining balance of $4 million within 30 days. Suppos

Runway Fashions Inc.

Please answer question 20-3 (only)Part a,b,c/ please perform the problem in exel. EX 20-3 Runway Fashions Inc. manufactures and sells women's clothes. The company began operations on August 1, 2009, and operated at 100% of capacity (35,000 units) during the fist month, creating an ending inventory of 2,500 units. During Sep

Auditing and Attestation

Which is true about the auditor's observation of physical inventory counts? a) It can provide evidence supporting the existing assertion. b) It can provide evidence supporting the completeness assertion c) Both of the above d) None of the above Which audit procedure is most likely related to the classification and underst

Management Efficiency Ratio

This is my first accounting class and I am not very good at it. I would appreciate any assistance that I am given. My assignment is to complete a management efficiency ratio of both company's financial statement and give my findings for both.

Purchase Discounts and Inventory

23. The use of a Purchase Discounts account implies that the recorded cost of a purchased inventory item is its a. invoice price. b. invoice price plus any purchase discount lost. c. invoice price less the purchase discount taken. d. invoice price less the purchase discount allowable whether taken o

Chavez Corporation reported the following data for the month of July

I need assistance with these study questions, please show examples when available. Chavez Corporation reported the following data for the month of July: The cost of goods manufactured for July is: $203,000 $215,000 $204,000 $216,000 Chavez Corporation reported the following data for t

Accounting

On March 1, 2007, Geoffrey Company acquired real estate, on which it planned to construct a small office building, by paying $90,000 in cash. An old warehouse on the property was demolished at a cost of $8,200; the salvaged materials were sold for $1,700. Additional expenditures before construction began included $1,500 attor

MJ Department Store

MJ Department Store expects to generate the following sales figures for the next three months: July August September Expected sales $480,000 $560,000 $600,000 MJ's gross profit rate is 45% of sales dollars. At the end of each month, MJ wants a merchandise inventory balance equal to 30% of the following month's expected s

Production and Direct Materials Budgets

Please see the attached file for the fully formatted problems. Tonga Toys manufactures and distributes a number or products to retailers. One of these products, Playclay, requires three pounds of materials A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter - July, Aug

Renton Co. uses special journals to record its transactions.

Please explain any errors. Problem attached. Renton Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of May: Record these transactions in the following journals.

ethical issues, management of fixed assets & inventory

1. The market value of Lake Corporation's inventory has declined below its cost. Vickie Maher, the controller, wants to use the allowance method to write down inventory because it more clearly discloses the decline in market value, and it does not distort the cost of goods sold. Her supervisor, financial vice-president Doug B

Multiple Choice Costing Questions

1. A variable cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases. True False 2. A sunk cost is: A. a cost that is planned to be incurred in the near future. B. irrelevant for decision making. C. a cost connected with drilling for oil. D. aff

Income statement for Z-watch

The Z-Watch Company manufactures trendy, high-quality moderately priced watches. As Z-Watch?s senior financial analyst, you are asked to recommend a method of inventory costing to the chief financial officer (CFO). The CFO will use your recommendation to construct Z-Watch?s 2008 income statement. The following data are for the y

Accounting: Inventories, Income and Costs

Please see the attached file for the entire problem. Within the relevant range, as the number of units produced increases: (a) the variable cost per unit remains the same. (b) fixed costs in total remain the same. (c) variable costs increase in total. (d) all of the above. Vignana Corporation manufac

P7-6AA Black diamond Slope Co: Prepare production and direct materials budgets

Preparing production and direct materials budgets see pdf attached Problem 7-6AA Preparing production and direct materials budgets L.O. C3, P3 Black Diamond Slope Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company's management predicts that 5,000 skis and 6,000 pounds of carbon fiber will

Riordan Manufacturing: Inventory Control Process, Quality tools to collect data

We have selected Riordan Manufacturing as our virtual company My Team represents a group of employees or managers in the organization and has been selected to run a pilot process improvement team. We chose to work with the inventory control process. I need help discussing Quality tools that you would recommend using to

Inventory Management Distribution of Hospital Bandages

Managing distribution of hospital bandages. The mean lead time demand for bandage bx-5 is 60 and is normally distributed. The standard deviation for bx-5 is 7. Service level is 90% a. What safety stock level is recommended for bx-5 bandage. b. What is the appropriate reorder point.