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Inventory models

OfficeHQ carries boxes of Disco floppy diskettes. Because the diskettes come in different formats, OfficeHQ has decided to use a periodic review policy, in which it places an order with Disco once every three weeks. Weekly demand for Disco diskettes at OfficeHQ averages 45 boxes. The lead time for delivery is approximately one w

Inventory models

It is October 15, and Furr's Stationary must decide how many calendars it should order from the World Wildlife Federation. The calendars cost the company $4.25, and Furr 's sells them for $9.50. The calendars will arrive on November 1,and demand during the period between November 1 and Christmas is estimated to follow a normal

Inventory models: Quantity discount model

Zeigler's Lumber Supply sells an average of 15,200 board feet of 2 by 4 lumber weekly. Ziegler's purchases its 2 by 4 lumber from Western Cascade Wood Products. Western Cascade offers its customers the following all units quantity discount schedule: Order Quantity (in Board Feet) Cost per Board Foot 1 -24,999

Inventory models

Mother Smith's Pies produces frozen fruit pies for sale to local restaurants. Demand for one of its best sellers, apple,averages 150 pies per day. The company's production facility is capable of producing 50 pies per hour and operates eight hours a day, seven days a week. The pies cost $2.25 to produce,and Mother Smith 's estima

Inventory models places orders for Wilson golf balls every other week. Weekly demand for these golf balls averages 50 dozen, and the lead time for delivery of the balls is one week. wishes to have a safety stock of 10 dozen golf balls to allow for variation in weekly demand. If the inventory at the time an order is

Formulate this business case as an LP problem.

The ABC Bicycle Company will be manufacturing both men's and women's models for its Easy-Pedal 10-speed bicycles during the next two months. Management wants to develop a production schedule indicating how many bicycles of each model should be produced in each month. Current demand forecasts call for 150 men's and 125 women's mo


Clemens Company uses the periodic inventory method and had the following inventory information available for the month of November. Date Transaction Units Unit Cost 11/1 Beginning Inventory 500 $4 11/5 Purchase No. 1 600 $6 11/1

Cash, receivables, or inventory

Which of the following is the most important for an organization to manage: cash, receivables, or inventory? Defend you answer. How can different accounting methods impact an organization's net income?

Planned Ending Inventory

Avon Products plans it aggregate production rate in machine cycles. Forecast demand for the next three months is 5,000, 7,000, and 8,000 machine cycles. If there presently are 20,000 machine cycles worth of molded products inventory on hand and 6,000 cycles per month is the planned production rate, what is the planned ending

Comparative condensed income statements

I am having a bit of difficulty figured this problem out. I shall post it below and if I could have assistance figuring out the comparative condensed income statements that would be wonderful. Thank you in advance for your assistance. (See attached file for full problem description)

Jim's Music Company: LIFO for inventory

Jim's Music Company uses LIFO for inventory, and the company's profits are quite high this year. The cost of inventory has been steadily rising all year, and Jim is worried about his taxes. You are Jim's accountant and you suggested that the company make a large purchase of inventory to be received during the last week in Decemb

Accounting work that deals with treasury stock, Fifo and Lifo

1. A company uses the FIFO inventory method and reports the following data for 2004: Beginning Inventory $75,000 Purchases during 2004 300,000 Ending Inventory 100,000 Income before income taxes 80,000 Tax Rate 40% If the company had used LIFO ending inventory would have been valued at 85,000 dollars a. Compute the


93. A co. EOQ is 100 widgets, and it maintains a 50 unit safety stock. Which of the folowing is the co. average. 100 units 60 57.07 12.25 75

Cost accounting issues 11688 Q ACC

Question 16 (1 point) The relevant activity base for a cost depends upon which base is most closely associated with the cost and the decision-making needs of management. ? True ? False Question 23 (1 point) Because variable costs are assumed to change in constant proportion with changes in the activity leve

Computation of cost of inventory and the cost of goods

E4-16 In June, Naperville Company reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 200 $5 $1,000 12 Purchases 300 6 1,800 23 Purchases 500 7 3,500 30 Inventory 150 Instructions (a) Compute the cost of the ending inventory and the cost of goods

Travel Warehouse - Journalizing Entries

P4-1A Travel Warehouse distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of July, Travel's inventory consisted of 40 suitcases pur-chased at $30 each. During the month of July the following merchandising transactions occurred. July 1 Purchased 50 suitcases on acco

Accounting Changes

During 2005 Gross Profit was 180,000, COGS were 75% of Net Sales, Wage Expense was (1/9) of Net Sales, Wage Expense was (1/9) of COGS and these selected accounts changed as follows: A/P increased $65,000 A/R decreased $35,000 Inventory increased $25,000 Wage Payable decreased $15,000 FYE 12/31/05 compute the amt of 1) N



Cost flow, FIFO LIFO

2. Cost-flow assumptions-FIFO and LIFO using periodic and perpetual systems. The inventory records of Cushing, Inc., reflected the following information for the year ended December 31, 2004: # of unit Unit Cost Total Cost Inventory, January 1 . .


I would like someone to check my math and methodologies related to the following problem and identify any errors in my methodology and thought process. Here is the data: Purchased $600,000 in 2000. Purchased $3,000,000 during 2001. Operating expenses (excluding management bonuses) are $400,000, and sales are $6,000,000.

Financial statements

Attached are four spreadsheets (in one excel file) - please answer all questions contained therein. Thanks. Example (Question 1): Presented below (see attachment) is financial information for two different companies. Determine the missing amounts.


1. A small, local, food store stocks kiwi fruit. In the past 50 weeks, the store has experienced the following weekly demand for mangoes: Week! Demand Frequency (number of mangoes) (weeks) 20 10 25 30 40 50 60 10 The food store buys the kiwi fruit from its supplier for $2.00 e


1) Why are consigned goods not included in the physical inventory counts? 2) Why are goods that are not physically present included in the physical inventory count? 3) What impact does FOB shipping point and FOB destinations have on revenue recognition? 4) Which inventory costing meth

Finacial statements

1. What are the similarities and differences between periodic and perpetual inventory systems? 2. What types of companies use periodic inventory systems? 3. What types of companies use perpetual inventory systems? 4.. What are the basic journal entries used to record inventory transactions? 5. What are the diffe

Work In Process Inventory; Overhead Volume Variance; Capital Investment

Use the following to answer questions 22-23. Morningstar Corporation produces decorator wall coverings. Budgeted production is 480,000 square feet per month, and the standard direct labor requirement to make this amount is 12,000 hours. All overhead is allocated based on direct labor hours. Morningstar's management is inte


1. The raw materials used by a manufacturing company are properly classified as an inventory asset until what point in time? a. The date on which the invoice for the materials is paid.. b. The date on which the completed final products containing the materials is sold to the customer. c. The date on which the materials are