An auto shop performs a monthly inventory count for auto parts it carries. Assume 30 days per month. Determine the number of auto parts that should be ordered using the following information: (10 points) Average daily demand: 20 units Standard deviation of demand: 25 units/month Desired service probability: 98% Current inv
For your convenience, I have attached a formatted MS Excel spreadsheet containing the solutions to the inventory problems of the Staley Watch Company, with a detailed income statement data for the 2-year reporting period posed in the origianl question.
Compute FIFO, LIFO and Average. Please give detailed explanations on how/why each answer was found. Eddings Company had a beginning inventory of 400 units of Product XNA at a cost of $8.00 per unit. During the year, purchases were: Feb. 20 600 units @ $9 Aug. 12 300 units @ $11 May 5 500 units @ $10 Dec. 8 200 units
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
Which of the following disclosures is required for a change from LIFO to FIFO? A) The cumulative effect on prior years, net of tax, in the current retained earnings statement B) The justification for the change C) Restated prior year income statements D) All of these are required.
The demand for barbeque grills has been fairly large in the past several years, and Morrison's Home Supplies, Inc., usually orders new barbeque grills five times a year. It is estimated that the ordering cost is $60 per order. The carrying cost is $10 per grill per year. The lead-time is 12 working days. Furthermore, Morrison's
Inventory systems and Calculating revenues, Expense and income see attachment
Problem 1. Tappan industrial sells machinery on the installment plan.On September 1 2005, Tappan entered into an installment sale contract with Western Productions for a six year period. Equal annual payments under the installment sale are $187,500 and are due on August 31 of each year beginning in 2006
E22-2 (Change in Principle?Inventory Methods) Holder-Webb Company began operations on January 1, 2005, and uses the average cost method of pricing inventory. Management is contemplating a change in inventory methods for 2008. The following information is available for the years 2005-2007. Net Income Computed Using Average Co
Western Outfitters is a prominent manufacturer of casual denim clothing in Durango, Colorado. The denim used daily in their manufacturing process to produce jeans is normally distributed with an average of 3,000 yards of denim and a standard deviation of 600 yards. The lead time to receive an order of denim cloth from Long Isl
Dear OTA, Please explain with steps Thanks 52. The following lots of a particular commodity were available for sale during the year: Beginning inventory 10 units at $61 First purchase 25 units at $63 Second purchase 30 units at $64 Third purchase 15 units at $73 The firm uses the periodic system and there a
Advance Products, Inc. has just organized a new division to manufacture and sell specially designed tables for mounting and using personal computers. The company's new plant is highly automated and thus requires high monthly fixed costs, as shown in the schedule below: Manufacturing costs: Variable costs per unit:
Please see the attached file.... I have filled out a template for the items listed, but am unsure of the outcome. Can you advise? Thank you. Marks Manufacturing Company has the following beginning balances: Materials inventory $100,000 Work in process $370,000 Finished Goods
Is there a simple equation or way in which to determine what the minimum and maximum inventory levels should be in a hypothetical warehouse? What information must be known in order to determine the Kmin and Kmax inventory levels? Is the determination if min/max inventory levels at all like determining the upper and lower cont
1. The office manager for the Metro Life Insurance Company orders letterhead stationery from an office products firm in boxes of 500 sheets. The company uses 6,500 boxes per year. Annual carrying costs are $3.00 per box, and ordering costs are $28.00. The following discount price schedule is provided by the office supply comp
Electronic Heaven, Inc., sells electronic merchandise, including a personal computer offered for the first time in September, which retails for $695. Sales of this personal computer for the next six month period (ending February 28) totaled $52, 125. Purchase records indicate the following on the amounts purchased and prices and
Please give a detailed description of JIT II system of Inventory Control.
1. In 1995 Chrysler has a return on equity of 20 percent, whereas Ford's return is only 8 percent. Use the decomposed ROE framework to provide possible reasons for this difference. 2. In a period of rising prices, how would the following ratios be affected by the accounting decision to select LIFO, rather than FIFO, for inven
1 What are the differences between the periodic and the perpetual methods for tracking inventory? What are some advantages and disadvantages to each method? 2 Describe the differences between the FIFO and LIFO methods of inventory valuation. What might be some reasons a company would pick one method over another?
In an inflationary environment, which inventory cost flow method will produce the lowest amount of cost of goods sold? a. LIFO b. FIFO c. Weighted Average. d. All methods will produce the same amount of cost of goods sold. 2 Williams Company uses the perpetual inventory method. Williams purchased 50
Determine the effect, if any, of each of the errors on the following items. Give the dollar amount of the effect and whether or not it would overstate(+), understate (-), or not affect(NA) the account. See attached file for full problem description. Effect on Inventory Errors on Financial Statements The following incom
Estimating Ending Inventory. See attached file for full problem description. Estimating Ending Inventory: Gross margin Method Don Green, owner of Plains Company, is reviewing the quarterly financial statements and thinks the cost of goods sold is out of line with past years. The following historical data is available for 200
Golf Away Corporation is a retail sport stores carrying golf apparel and equipment. The store is at the end of its second year of operation and is struggling. A major problem is that its cost of inventory has continually increased in the past two years. In the first year of operations, the store assigned inventory costs using LI
BE5-3 Prepare the journal entries to record the following transactions on Benson Company's books using a perpetual inventory system. (a) On March 2, Benson Company sold $800,000 of merchandise to Edgebrook Company, terms 2/10, n/30. The cost of the merchandise sold was $620,000. (b) On March 6, Edgebrook Company returned $12
E6-6 Zambia Company reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 200 $5 $1,000 12 Purchase 300 6 1,800 23 Pu
Use the following info to answer questions 5 to 8 Control Furniture Company Annual Report Excerpts (Figures in thousands of dollars) December 31 Year X1 Year X2 Inventories at FIFO cost
See attached file for full problem description.
P6-2A Breathless Distribution markets CDs of the performing artist Christina Spears. At the beginning of October, Breathless had in beginning inventory 1,000 Spears CDs with a unit cost of $5. During October Breathless made the following purchases of Spears CDs. Oct. 3 3,500 @ $6 Oct. 19 2,000 @ $8 Oct. 9 4,000 @ $7 Oct. 25
Determine the amount of the ending inventory by applying the lower of cost or market basis. E6-9 Delhi Hardware reported cost of goods sold as follows. 2006 2007 Beginning inventory $ 20,000 $ 30,000 Cost of goods purchased 150,000 175,000 Cost of goods availa
The A Company had the following beginning inventory, purchases, and sales of inventory during the first quarter of 2006: Units Cost Per Unit January 1 Beginning Balance 1,200 $15 15 Purchased 500 $16