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2 years ago

Ayayai Corp. has the following inventory data:

Business

1 answer:

Brums [2.3K]2 years ago

6 0

Answer:

Using the average cost method, the value of ending inventory is $2,200

Explanation:

Ayayai Corp. uses average cost method. The company counts merchandise inventory on July 30 (the company uses periodic inventory system).

Average cost = Total Cost of Inventory /Total Units in Inventory

1. Beginning inventory: 66 units at $19, total cost $1,254

2. 7 July, Purchases: 231 units at $20, total cost $4,620

3. 22 July, Purchases purchase: 33 units at $22, total cost $726

Total purchase in the period: 264 units, total cost $5,346

Average cost = ($1,254 + $5,346 )/(66 + 264) = $6,600/330 = $20 per unit

On July 30, there are 110 units on hand

The value of ending inventory = 110 x $20 = $2,200

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The inverse demand for a homogeneous-product Stackelberg duopoly is P = 16,000 - 4Q. The cost structures for the leader and the

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2 years ago

What is the payback period of a project with average annual cash outflows of $8,000, average annual cash inflows of $10,000 and

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Answer:

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2 years ago

Crafty Cookbooks Inc. is a large publisher that focuses on developing cookbooks with recipes from around the world. Recently, si

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Job enlargement strategies increase job satisfaction more than job rotation strategies

Explanation:

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Whereas the job rotation means the switching of job from one job to another so that they grow in near by future.

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2 years ago

A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 75 pounds of Kona coffee beans a

Anna35 [415]

Answer:

EOQ 400 units

inventory cost $1,200

holding $600

ordering $600

reorder point 369.9 pounds

Explanation:

EOQ

$Q_{opt} = \sqrt{\frac{2DS}{H}}$

Where:

D = annual demand = 200 days x 75 pound per day = 15,000

S= setup cost = ordering cost = $ 16

H= Holding Cost = $ 3

$Q_{opt} = \sqrt{\frac{2(15,000)(16)}{3}}$

EOQ 400

Inventory cost:

average inventory x holding cost

400/2 x $3 = $600 holding cost

order per year x order cost

15,000/400 x $16 = $600 order cost

reorder point: demand x lead time + safety stock

to get a confidence of 99% we need to look at the table for a Z value which is above 99% of the cases and then, move it to our ditribution.

In the talbe we got at a Z of 2.33 has a score of 0.99 which is the probability we want.

Now we calculate the safety stock

$2.33 \sqrt{4\times 15^{2} }$

safety stock: 69.9

This is the safety stock

Now the company will reorder at:

daily use x lead time + safety stock:

75 x 4 + 69.9 =

300 + 69.9 = 369.9

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2 years ago