Answer:
EPQ = 1982
maximum inventory = 1090
average inventory = 545
order cycles = 44.04
total cost of managing = $2180
Explanation:
given data
monthly demand = 900
annual demand = 12 × 900 = 10800
Production averages = 100 units
Holding costs = $2.00
setup cost = $200.00
company operates= 240 days
solution
daily usage = 
daily usage = 45
we find here EPQ
EPQ = 
× 
...........1
EPQ = 
× 
EPQ = 1982
and
maximum inventory = 
× daily production - daily use
maximum inventory = 
× (100-45)
maximum inventory = 1090
and
average inventory = 
average inventory = 
average inventory = 545
and
order cycles = 
order cycles = 
order cycles = 44.04
and
total cost of managing = 
total cost of managing = 
total cost of managing = 2179.81 = $2180
Answer:
$400
Explanation:
The computation of the corrected operating income is shown below:
= Sales revenue - costs of goods sold - SG&A Expense
= $1,600 - $800 - $400
= $400
The gross profit would be
= Sales revenue - costs of goods sold
And the operating income would be
= Gross profit - SG&A Expense
For computing the operating income, we deduct the costs of goods sold and the SG&A Expense from the sales revenue
Answer:
Explanation:
The current liability is that liability in which the obligation is arise for one year or less than one year.
So, the categorization is shown below:
a. A note payable for $100,000 due in 2 years. = It is not a current liability as it is due in 2 years that come under the long term liability
b. A 10-year mortgage payable of $300,000 payable in ten $30,000 annual payments. = Current liability for first annual payment only and rest is consider to be long term liability
c. Interest payable of $15,000 on the mortgage. = Current liability as it is arise within one year
d. Accounts payable of $60,000. = Current liability as it is arise within one year
The current liability is shown on the liabilities side of the balance sheet.
Answer:
Direct Labor 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000
Explanation:
The journal entry is shown below:
Work in process A/c Dr $574,000
Manufacturing overhead A/c Dr $163,000
To Wages payable A/c $737,000
(Being direct and the indirect cost is recorded)
For recording this given transaction, we debited the work in process account and manufacturing overhead account and credited the wages payable with the total amount
