Appliance Alley is a retailer of brand-name major appliances. One of its best sellers is the Poseidon brand washing machine. Demand for this machine averages 8 units per week. The machines cost Appliance Alley $625 each and sell for $999 each. Appliance Alley estimates that its annual holding cost rate for the washing machines i
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
Food Town wishes to determine an optimal order policy for Marino brand pasta. The store sells an average of 320 one-pound packages per week. The cost of placing an order is $30, and the annual holding cost rate is estimated to be 14%. The pasta costs the store $.60 per package. Lead time is estimated to be one week, and the stor
Raul 's Bakery bakes sourdough bread each day. Demand on past days has followed approximately a normal distribution,with an average of 60 loaves and a standard deviation of 12 loaves. The bread sells for $2.50 per loaf and costs $1.00 to produce. Loaves of bread unsold at the end of the day are donated to a food bank and result
SportWorld.com 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. SportWorld.com 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
Playhouse World is distributor for a Victorian-style playhouse manufactured in Thailand. If the furm is out of stock of this playhouse,it offers customers a discount of $50 for each week they must wait for delivery. The administrative cost of processing a backorder is estimated to be $10. The playhouses cost the firm $3500 each
ADM,Inc., a manufacturer of filing cabinets, has an average monthly demand of 500 units for its four-drawer model, ADM-4B. The company 's production facility is capable of producing 2000 filing cabinets per month. Because production of each different model of filing cabinet made by the firm requires different stamping tools, t
Price-Mart.com stores sells an average of two thousand pairs of the Excite brand of jeans per week. While the jeans normally cost retailers $16.00 per pair, Excite offers customers discounts on all pairs ordered if the order exceeds certain threshold amounts. In particular, the discount pricing schedule is as follows: Order Q
Culton Hair Salon sells an average of 20 bottles of hair conditioner weekly.There is a $25 cost to place an order with the distributor of the conditioner,and the conditioner costs the salon $2.50 per bottle.The annual holding cost rate is 18%,and the lead-time for delivery is one week.The salon desires a safety stock of five bot
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
Bear Manufacturing begins operations on October 1. Information from job cost sheets shows the following: Manufacturing Costs Assigned (non-cumulative) Job October November December A $11,500 B $5,200 $8,300 C $3,000 $5,800
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
In a comparison of 2005 to 2004 performance, Neir Company's inventory turnover increased substantially, although sales and inventory amounts were essentially unchanged. Required: Which of the following statements best explains the increases inventory turnover ratio? 1. Cost of goods sold decreased. 2. Accounts receivab
On January 1, 2005 river company's beginning inventory was $400,000. During 2005 the company purchased $1,900,000 of additional inventory, and on December 31, 2005 River's ending inventory was $500,000. Required: What is the inventory turnover for 2005?
Define and compare the four types of inventory: Raw material, component, sub-assemblies, and finished goods.
Page 1. 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 purchased at $30 each. During the month of July the following merchandising transactions occurred. July 1 Purchased 50 suitca
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?
When costs are rising over time: LIFO results in higher profits that FIFO. Cost of goods sold using the weighted average method will be greater than LIFO cost of goods sold. balance sheet inventory balances will be greater under LIFO. FIFO results in higher profits than LIFO.
Tech Firms Stand to Gain from Huge Write-Offs LEAD STORY-DATELINE: USA Today, July 16, 2001. Many high-technology companies, like Nortel Networks, Micron Technology and JDS Uniphase, have written down massive amounts of their inventory. For example, Nortel Networks revalued some of its inventory parts at $0, though the
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
The company I work for produces canned vegetable soup. The company uses the weighted-average method in its process costing system. The company sold 300,000 units in January. There was no beginning work in process or finished goods inventory. Work in Process inventory at January 31 was 24,000 units, which were 75% complete as
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)
A company has been using the FIFO cost method of inventory valuation since it was started 10 years ago. Its 2003 ending inventory was $90,000, but it would have been $70,000 if LIFO had been used. Thus, if LIFO had been used, this company's income before taxes would have been a. $20,000 less in 2003. b. $20,000 less over the 1
E4-16 In June, Naperville Company reports the following for the month of June. Units Unit Cost Total Cost June 1 Inventory 200 $5
19. (Retail Inventory Method) Presented below is information related to Ricky Henderson Company. Cost Retail Beginning inventory $ 200,000 $ 280,000 Purchases 1,375,000 2,140,000 Markups
Outback Furriers started in 2003 with $94,000 of merchandise inventory on hand. During 2003 $400,000 in merchandise was purchased on account with terms 1/15 n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Outback paid freight charges of $6000. Merchandise with an invoice amount of $5000 was re
Nu Company reported the following pre-tax data: Net Sales 2800 Cost of Goods available for sale 2500 Operating Expenses 880 Effective tax rate 40% Ending Inventories: If LIFO is elected 820 If FIFO is elected 1060 1. What is Nu's gross profit percentage if it elects LIFO? 2. Wat is Nu's net incom
During 2005, Purchases were $1,320,000; Purchases Adjustments were 10% of net Purchases; Cost of Goods Purchased was $1,440,000; Inventory decrease by 1/3 and is $360,000 at 12/31/05 (fiscal end). Comute FYE 12/31/05, the amount of : 1) Purchases Adjustments 2) Freight-In 3) Beginning Inventory 4) Cost of Goods Sold C
On December 31 of last year, Wolfson Corporation had in inventory 400 units of its product, which cost $21 per unit to produce. During January, the company produced 800 units at a cost of $24 per unit. Assuming that Wolfson Corporation sold 700 units in January, what was the cost of goods sold (assume FIFO inventory accounting)?
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