Answer:
Explanation:
A) The current order cycle length = 2 weeks
= 2 / 50 year = 0.04 year
B) The current order size
cycle time ( 2 weeks ) * demand per unit time ( 100 bottles )
= 2 * 100 bottles = 200 bottles
C) average inventory
= order size / 2 weeks = 200 / 2 = 100 bottles
D) calculate how much the liquor store spend per year on ordering
first we calculate the number of orders per year = 50 / 2 = 25
next the amount spent per year on ordering = 25 * 10 = 250
E) calculate inventory holding costs per year
= average inventory * cost of holding per bottle
= 100 * 2 = 200
Answer:
ROA for 20X1= 10%
Profit margin for 20X1= 5%
Assets turnover= 2
ROA for the coming year= 11.25%
Explanation:
Weber corporation return on assets for 20X1 can be calculated as follows
ROA= Net income/Average total assets × 100
= 2,450,000/24,500,000 × 100
= 0.1 × 100
= 10%
The profit margin can be calculated as follows
= Net income/sales × 100
= 2,450,000/49,000,000 × 100
= 0.05 × 100
= 5%
The assets turnover ratio can be calculated as follows
= Sales/Average Total assets
= 49,000,000/24,500,000
= 2
The company ROA if when the turnover rate for next year is2.25 and the profit margin remain unchanged can be calculated as follows
= profit margin × assets turnover ratio
= 5% × 2.25
= 11.25%
Answer:
Shellhammer Company
Ending inventory = $712
Cost of goods sold = $2,492
Explanation:
a) Data and Calculations:
Date Item Units Unit Cost Total Cost
September 1 Inventory 100 $3.34 $334.00
September 8 Purchases 450 3.50 1,575.00
September 18 Purchases 350 3.70 1,295.00
September 30 Total 900 $3,204.00
Ending inventory 200
Cost of goods sold 700
Weighted Average cost = Total cost of goods available for sale/Total units available for sale
= $3,204/900 = $3.56
Value of Ending Inventory = $3.56 * 200 = $712
Value of Cost of goods sold = $3.56 * 700 = $2,492
b) The weighted average inventory costing, under the period inventory system, used by Shellhammer is an assumption that the costs attributable to ending inventory and cost of goods sold are determined from the average cost per unit and that these the average cost is ascertained at the end of the period. Therefore, the cost of beginning inventory and purchases are accumulated and divided by the units of goods available for sale.
Answer:
6949 units
Explanation:
Given:
Estimated depreciation of the new project = $26,000
Fixed cost = $79,000
Total sales = $187,000
Estimated variable costs per unit = $11.80
let the break-even production be 'n'
Now,
the break-even point is achieved when there is no profit no loss
thus,
Profit = 0
Also,
Profit = Total sales - Fixed cost - (Total variable cost) - Estimated depreciation
or
0 = $187,000 - $79,000 - ( $11.80 × n) - $26,000
or
11.80 × n = 82000
or
n = 6949.15 ≈ 6949 units
