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    Purchases, Inventory and Cost of Goods Sold (COGS)

    Inventory-Ordering Cost

    Mr. Paul sells 3600 electric motors each year. The cost of these motors is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, and the holding cost is $20 per unit per year. There are 360 working days per year and the lead time is five days. If Mr. Paul orders 200 units each time he places

    Maximum Inventory Level

    Peter is a production manager for a manufacturing firm that produces staplers. The annual demand for the stapler is 1,600 units. The holding cost is $2 per unit, per year. The cost of setting up the production line for this is $25. There are a total of 200 working days per year. The production rate for this product is 80 per

    Budgeting: Operating Expenses, Cost of Goods and Net Income

    Use the following to answer questions 47-20. Harlow Promotions, Inc. sells T-shirts for concerts. The company has developed the following budget for the coming year based on a sales forecast of 80,000 T-shirts: Sales $1,600,000 Cost of Goods Sold


    1. What is the significance of accounting for inventories? What "difference does it make" if the amounts reported are accurate or not?

    Inventories valuation

    Complete Questions 9-8, 9-9, 9-16 and 9-5A. All work must be shown and the answers must be aligned and formatted as indicated in the questions.