Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? * O P5,760 O P5,280 O P8,160 O P2400
Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies...
A: Inventory costing can be define as the process in which management of a company valued their invento...
Q: Parent Company acquires Subsidiary Company on September 1, 2020. Parent seeks an independent valuati...
A: Goodwill is an intangible asset that is associated with the purchase of one company by another. Spec...
Q: Parent Company acquired Subsidiary Company in two stages: • In 2017, Parent acquired a 30% equity in...
A: Goodwill is an intangible asset which is reported under the fixed assets on the balance sheet of the...
Q: Pharoah has 21,200, $4 noncumulative preferred shares issued. It paid the preferred shareholders the...
A: Error in accounting entry can be corrected by either reversing entry which is incorrect and entering...
Q: Mariam is currently renting an apartment for R.O.725 per month and paying R.O.275 annually for rente...
A: Lease- Lease agreements are contracts or instruments that transfer property from one person to anoth...
Q: Santa PLC is an all equity financed company with 100 million shares outstanding trading at €2 per sh...
A: Discount- In simple terms, Discount is an allowance or compromise in value. Discount is given so tha...
Q: Dell Company is selling sounds and lights equipment. The company’s fiscal year ends on March 31. The...
A: Warranty is a contract between the seller and buyer of the product. Under the warranty contract, the...
Q: Anthony's basis in the WAM Partnership interest was $200,000 Just before he received a proportionate...
A: The profit or loss of partner of firm on liquidation will be difference between the basis of the par...
Q: Since its incorporation in 2010, Park Inc. has qualifed as a CCPC. During the period since incor-por...
A: 1. Sale proceeds from sale of property $275000 Less : book value on the date of sale ($129600...
Q: Vaasa Chemicals makes a product by way of two processes – Mixing & Refining. Its process costing sys...
A: Cost of the units completed and transferred out = completed and transferred out*total unit cost = 3...
Q: On January 1, 20x1, ABC Corporation purchased all of XYZ Corporation's common stock for $1,200,000. ...
A: Solution Retained earning are the amount of profit a company has left over after paying all its dire...
Q: How is the Non-Controlling Interest displayed in a consolidated balance sheet? As a separate item in...
A: The correct Answer for the above mentioned question is given in the following steps for your referen...
Q: The shareholders’ equity section of Haemul Pajeon Co. as of Dec. 31, 2019, contained the ff. account...
A: No. of shares issued under bonus issue = No. of shares outstanding x bonus rate Amount charged to Re...
Q: Mathis Company and Reece Company use the perpetual inventory system. The following transactions occu...
A: The question is based on the concept of Financial Accounting.
Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with...
A: Formula: Contribution margin = Sales price - variable cost
Q: Mavic Enterprises Post-Closing Trial Balance Dec. 31, 20X1 (in Philippine Peso) TITLE Dr Cr Petty Ca...
A: Statement of Financial position (Report Form) Assets Amount (P) Current assets Petty...
Q: aaArnina established a service business to be known as Arnina Photography on July 1, 2021. During th...
A: Journal entry refers to the process of recording commercial transactions for the first time in the b...
Q: what is the annual cost of financing? a. 12% b. 17.5% c. 10% d. 14%
A: Solution:- Given, A Company enters into an agreement with a firm that will factor the company's acco...
Q: On January 1, 2022, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiab...
A: 1) Sales of P 5500000 Less: merchandise ahipped to S at cost plus 25% (800000 x 125%) (1000000)...
Q: P Company acquired 4,000 shares of the outstanding stock of S Company for P1,200,000 on January 1, 2...
A: Consolidation is the preparation of books of accounts of two entities where one entity has a substan...
Q: Jan has a 35% marginal tax rate and has already recognized a STCL of $12,000 and a LTCG of $10,000, ...
A: Irrespective of the marginal tax rate, capital gain tax rate on collectibles/ antiques is 28%.
Q: Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January ...
A: Solution: When bonds are redeemed before maturity date, difference between carrying value and redemp...
Q: Which of the following choices best describes reasonable conclusions that you might make about the t...
A: Current ratio = Current assets / Current liabilities Current ratio of A = 40,000/10,000 = 4 Current ...
Q: Page 4 of 4 12. Mr. Bean receives a monthly basic salary of P38,000. He also receives P2,000 monthly...
A: Total Compensation = 38000 +2000 +2000 +500 = php 42,500
Q: John Bryant invests $45,000 at 9% annual interest, leaving the money invested without withdrawing an...
A: Compound interest (also known as compounding interest) is the interest on a loan or deposit that is ...
Q: Cullumber Electronics issues a $355,500, 3%, 10-year mortgage note on December 31, 2021. The proceed...
A: Interest = Loan amount x rate of interest x no. of months in calendar year /12 months Loan Payment =...
Q: 2. XYM Store recorded the following information for the first quarter of its operations for 2008: Ca...
A: Current assets are assets that are readily converted into cash in less than a year. It includes cash...
Q: P17.1 (LO 1) (Debt Investments) Presented below is an amortization schedule related to Spangler Comp...
A: Corporate Bonds- Corporate bonds are investment bonds that corporations issue to raise capital funds...
Q: Reg 1 and 2 Reg 3 The company's business conditions are improving. One possible result is a sales vo...
A: Flexible Budget: It is the budget that is adjusted to the volume level of company and continuously ...
Q: Tiger electronics Company uses a perpetual inventory system. The unadjusted trial balance for Compan...
A: The question is based on the concept of Cost Accounting.
Q: A loan of £50, 000 is repayable by equal payments at the end of each of the next 5 years. Interest i...
A: A sum of money payable as one of the numerous equal payments over a certain period of time is referr...
Q: percent. The tax
A: The formula is shown as,
Q: Sinovac Corporation, a 75% own subsidiary of Pfizer Corporation sells inventory to its parent at 150...
A: Solution Determine the realised and unrealised profits- Downstream P: (sellers) (s buyer) Cost on...
Q: Consider the following data for Martin Manufacturing during the month of November: Stan...
A: Answer) Calculation of Material Price variance Material price variance = (Standard price per pound o...
Q: Yuanne Sipp and Letitia Grimes share partnership income on a 3:2 basis. They have capital balances o...
A: Total capital of existing partnership after admission of Tammy tuck = 550,000 + 284,000 + 240,000 = ...
Q: [S1] By executing a rights offering, we acknowledge the preemptive right of current ordinary shareho...
A: Rights offering or rights issue means a group of rights is offered to existing or current shareholde...
Q: Parent Corporation issued on March 31, 2021 500,000 shares of its P10 par ordinary shares, P40 marke...
A: Calculation of Consideration paid: a Number of shares outstanding of A Company 220,000.00 =550000...
Q: The non-controlling interest in net assets of a partially owned subsidiary is: O Decreased by share ...
A: The answer for the multiple choice question and relevant explanation are presented hereunder : What ...
Q: Scoresby Incorporated tracks the number of units purchased and sold throughout each year but applies...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: When determining the liability for compensated absences, the amount should be based on 1. an average...
A: A compensated balance is an employee time off pay that means an employee get compensated for the tim...
Q: 3. Given: Your boss has asked you to investigate purchasing new machines for a processing line. The ...
A: Given as, Demand= 225, 000 units/year, i= 8.0 %.
Q: n 2019, Datasoft Inc. received $350,000 in dividends from CSLabs Inc. Datasoft's taxable income befo...
A: Dividend received deduction (DRD) is a tax deduction that is applicable to the entities which receiv...
Q: Prepare the necessary journals for the given transactions 1. Cash paid to Sara BD 600 2. Sold Furnit...
A: There are three golden rules in accounting for recording the transaction : Debit what comes in , C...
Q: Factory overhead for the period amounted to P1,200,000. Normal production of the finished goods is 5...
A: Overheads are the estimated cost which are not directly related with production. In simple, it is ag...
Q: What is the total amount that Bryant Inc. should expense during the year (versus the company capital...
A: 1. Purchased the cost of a patent from another company for $165,500- Patent is an intangible asset h...
Q: The Diversified Portfolio Corporation provides investment advice to customers. A condensed income st...
A: Cash flow statement refers to one of the key financial statements which is formed, prepared and pres...
Q: Catalina Corporation begins the year with a $195 balance in Retained Earnings and a $320 balance in ...
A: Introduction: Balance sheet: All Assets , liabilities and owners equity are shown in Balance sheet. ...
Q: Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on Dec...
A: Journal entry refer to recording of transactions into the day book of the company and it is vital st...
Q: Mrs. Kimberly deposited P 300, 000 in an account earning 8% compounded every 6 months. On the 2th ye...
A: Compound interest: Compound interest denotes an interest computed on the total initial deposits and ...
Q: Assume that the business combination is a pooling of interests. Prepare all journal entries on Pop's...
A: Pooling of interest is an approach that is used for the purpose of reporting the financial transacti...
16
Step by step
Solved in 2 steps with 1 images
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? Bulldogs Inc. currently fills mail orders from all over the country and receipts were received in its head office. The company’s average accounts receivable is P3,125,000 and is financed by a bank loan with 10% interest. Bulldogs is considering a regional lockbox system to speed up collections. This system is projected to reduce the average accounts receivable by 15%. The annual cost of the lockbox system is P25,000. What is the estimated net annual savings in implementing the lockbox system?4. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: a. Compute the economic order quantity. b. How many orders would be placed under the EOQ policy? c. Compute the annual ordering cost for the EOQ. d. Compute the annual carrying cost for the EOQ. e. Compute the total inventory-related cost at the EOQ.
- A. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Required: 1. Compute the economic order quantity. 2. How many orders would be placed under the EOQ policy? 3. Compute the annual ordering cost for the EOQ. 4. Compute the annual carrying cost for the EOQ. 5. Compute the total inventory-related cost at the EOQ. 6. Previously, the company had been purchasing 5,000 units of product X per order: What is the ordering cost per year under the previous policy? ii. The annual carrying cost? iii. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy? i. B. Kings Company presents the following information: 1. Annual credit sales: P 25,200,000 2. Collection period: 3 months 3. Rate of return: 12% Kings company considers changing its credit term from n/30 to 3/10, 1/30. The following are…Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and corporation holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory?Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Wyteboard's minimum costs of ordering and holding inventory? SHOW THE ANSWER IN A GOOD ACCOUNTING FORM
- 5. Genesis Company is a wholesaler. It purchases 60.000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: Previously, the company had been purchasing 5,000 units of product X per order: a. What is the ordering cost per year under the previous policy? b. The annual carrying cost? c. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy?Assume Wyteboard Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Wyteboard's minimum costs of ordering and holding inventory?Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and receive an order, and it takes 10 workdays to receive it. The annual holding cost is 15% of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. At what level of inventory in Kgs should the company be placing orders? Round-up to the nearest integer O a. 247 O b. 154 O c. None is correct O d. 277 O e. 188
- Assume Palmer Corp. markers uses 1,440,000 gallons of ink each year. Assume Palmer will order the ink at a rate of P2 per gallon plus a fixed cost of P100 per order. At cost, the firm's carrying cost is 20% of the inventory value. What is Palmer's minimum costs of ordering and holding inventory?A retailer anticipates selling 3,000 units of its product at a uniform rate over the next year. Each time the retailer places an order for a units, it is charged a flat fee of $50. Carrying costs are S30 per unit per year. How many times should the retailer reorder each year and what should be the lot size to mınımize inventory costs? What is the minimum inventory cost? Use the formula ECQ to obtain your answers. They should order times a year units The minimum inventory cost is $You piace an order for 400 units of inventory at a unit price of P125. The supplier offers terms of 1/10, net 30. 1. f you take the full period, how much should you remit? 2. If you do take the discount, how much should you remit? The Luffy store begins each week with 300 bracelets in stock. This stock is depleted each week and reordered. If the carrying cost per bracelet is P41 per year and the fixed order cost is P95. 3. What is the total carrying cost?