Answer:
a) 2,093
b) It will reorder once there are 420 units left (demand during lead-time)
c) 34 days
Explanation:
a) economic order quantity
<u>Where:</u>
D = annual demand = 21,900
S= setup cost = ordering cost = 50
H= Holding Cost = 0.50
EOQ = 2092.844954
b) it takes four days to arrive:
if it sale 420 units per week then:
420 x 4/7 = 240 units are demand during delivery
c) order cycle:
EOQ / Annual Demand
2,093 / 21,900 = 0,09557 x 365 = 34.8333 days
It will order every 34 days (if it orders after 35 days will face shortage)
Answer:
See attached photo.
Explanation:
Refer to the photo attached.
Answer:
Debit Supplies $350, credit Cash $350
Explanation:
The journal entry for the purchase of supplies is shown below:
Office supplies A/c Dr $350
To Cash A/c $350
(Being the office supplies are purchased for cash)
Since the office supplies are purchased for cash which means the supplies are increased and the cash balance is decreased.
That's why we debited the supplies account and credited the cash account.
Employees who are paid a set annual wage regardless of the number of hours worked or the amount of work completed are paid on a(n) salary basis.
