TABLE 12.3 SAPPHIRE AEROSPACE INVENTORY ITEMS Category Part Number Average Inventory Units Value per Unit Raw materials RM-1 20,000 $1 RM-2 5,000 RM-3 3,000 6 RM-4 1,000 8 Work-in-process WIP-1 6,000 10 WIP-2 8,000 12 Finished goods FG-1 1,000 65 FG-2 500 88
Q: Greener Grass Fertilizer Company plans to sell 280,000 units of finished product in July and…
A: The question is based on the concept of Cost Accounting.
Q: How many units should the company produce in April?
A: SOLUTION:- Last Month (march )of company Vitale Hair Spray is 13000 units.These are going to be…
Q: Manitoba Transport collects 75% of its monthly sales immediately and the rest at the end of the…
A: Break-Even Sales - Break-even sales defined as the sales at which the company covers only the…
Q: Hyzel Manufacturing Company has an annual average requirement of 320,000 units. It has been…
A: Hi student Since there are multiple subparts, we will answer only first three subparts
Q: reedom plc uses 180,000 units of material each year. The cost of placing an order is £200 and the…
A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…
Q: Abner Company has an annual demand of 13,000 units of Material A. The cost per unit is P14. The…
A: Economic Order Quantity: Economic order quantity is an inventory management method. It refers to the…
Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…
A: Economic order quantity indicates the level of units that should be ordered to get the least cost of…
Q: At the end of last year, Amelie had 30,000 units in its ending inventory. Amelie's variable…
A: Difference in Units=Difference in Net income Fixed Manufacturing overhead per unit
Q: Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000.…
A: a) Working note:
Q: Ultravision Inc. anticipates sales of $460,000 from January through April. Materials will represent…
A: Cashflows means movement of cash, it can be positive or negative. Positive cashflows means cash…
Q: Post Company began the current month with $10,000 in inventory, then purchased inventory at a cost…
A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…
Q: Carter Company orders 250 units at a time, and places 15 orders per year. Total ordering cost is…
A: EOQ or economic order quantity is the ideal order of quantity purchased a company at a certain rate…
Q: Wayne's Wells has sales for the year of P48,900 and an average inventory 21 of P8,800. The cost of…
A: Days Sales Inventory = 365* Average Inventory/ Cost of goods sold
Q: For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200…
A: Economic Order Quantity refers to the number of units the company should add to the inventory and…
Q: The following information relates to a company . The fixed cost per order is ksh 1,500 The…
A: SOLUTION- ECONOMIC ORDER QUANTITY = 2*A*O / C A= ANNUAL DEMAND O= ORDERING COST C= CARRYING COST…
Q: Zane Corporation has an inventory conversion period of 64 days,an average collection period of 28…
A:
Q: The following information for Dorado Corporation relates to the three-month period ending September…
A: 1.
Q: Seah Corporation presents the following data: Usage is 400 units per month, cost per order is P20,…
A: Economic order quantity is that quantity which should be ordered in order to minimize ordering costs…
Q: The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item has a…
A: The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item…
Q: Minmax Processing Company has an average requirement of 5 boxes of its product per week. It has been…
A: Lead Time is equal to time gap between placement of order & receiving the Material. When Lead…
Q: Nowlin Pipe & Steel has projected sales of 6,400 pipes this year, an ordering cost of $5 per order,…
A: The conceptual formula used:
Q: A company starts the year with twenty units of inventory costing $20 each. In January, ten of these…
A: Particulars Units Price per unit Total value Beginning inventory 20 $20 $400…
Q: Ultravision Inc. anticipates sales of $420,000 from January through April. Materials will represent…
A: Cost is the price at which a good or service is purchased or manufactured.
Q: GGG Company Assume that the firm is expecting to have the following quarterly unit sales with a…
A:
Q: A retailer has annual sales of $500,000 and an average finished-goods inventory of$15,000. If the…
A: Introduction: Inventory turnover ratio is defined as the number of times a business would sell or…
Q: Spider’s Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…
A: Formula to calculate inventory turnover ratio is: ITR=COST OF GOODS SOLDAVERAGE INVENTORY
Q: The ABC Company consumes inventory of 67,500 units of components per year . The carrying cost per…
A: Economic Order Quantity: The economic order quantity is the ordering level at which the storage cost…
Q: Acmal Manufacturing Company is estimating the following raw material purchases for the last four…
A: Payment in cash for purchases made in the month of November: = (25% of November month Purchase) +…
Q: Crawford Steel Corp. buys inventory of 40,000 units annually. The purchase price per unit is $3.00…
A: Inventory Management: Inventory management tools like the economic order quantity, the reorder level…
Q: Kren processing company uses 2,400 units of a product per year on a continuous basis. The product…
A: At Economic Order Quantity the total cost is minimum. Formula: EOQ=2×Annual demand× cost per…
Q: WZY processing company uses 2,400 units of a product per year on a continuous basis. The product…
A: EOQ= 2×A×OCWhere,A=Annual demandO=Ordering costC= Carrying cost
Q: Acmal Manufacturing Company is estimating the following raw material purchases for the last four…
A: Amount to be paid in November for purchases in October = October purchase amount x 75% = P900,000 x…
Q: Libscomb Technologies' annual sales are $6,974,991 and all sales are made on credit, it purchases…
A: inventory turnover formula: inventory turnover =cogsinventory given, COGS = $3511,535 inventory =…
Q: The annual demand for an item is 10,000 units, the order quantity is 250, and theservice level is…
A: stock out is the situation when inventory is unable to meet the demand.
Q: A company uses components at the rate of 15,000 units per year, which are bought in at a cost of…
A: Holding cost:-This cost incurred in carrying the inventory in-store, therefore it is also known as…
Q: A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the…
A: we wili only answer the first three subparts. For the remaining subparts kindly resubmit the…
Q: Acti Manufacturing Corporation is estimating the following raw material purchases for the final four…
A: A cash budget is an estimation of expected cash receipts and disbursements based on experience. It…
Q: A company manufactures one product and has calculated its cost on a quarterly production budget of…
A: The marginal costing values the goods at variable cost, while under absorption costing inventory is…
Q: requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15%…
A: Economic order quantity is most optimal level of quantity that is required such that it minimises…
Q: Luster Corporation presents the following data: Usage is 400 units per month, cost per order is P20,…
A: Monthly requirement (M) = 400 Units Ordering cost (O) = P 20 Carrying cost per unit (C) = P 6
Q: Ajax Manufacturing produces a single product, which takes 8.0 pounds of direct material per unit…
A: Budgeting is used to analyze and evaluate the future situation. basically it is based on past…
Q: A company has 52 week per year operation. The weekly demand is for product it needs is 20 units and…
A: EOQ = 2 × D × SH where D= Annual Demand S= Cost of reordering (per unit) H=…
Q: Libscomb Technologies' annual sales are $5,790,872 and all sales are made on credit, it purchases…
A: Given that, annual sales = $5,790,872 purchases(cost of goods sold) = $3,221,342 inventory =…
Sapphire Aerospace operates 52 weeks per year, and its cost
of goods sold last year was $6,500,000. The firm carries eight
items in inventory: four raw materials, two work-in-process
items, and two finished goods. Table 12.3 shows last year’s
average inventory levels for these items, along with their unit
values.
a. What is the average aggregate inventory value?
b. How many weeks of supply does the firm have?
c. What was the inventory turnover last year?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- Cost of materials issuances under the FIF0 method Instructions Chart of Accounts Materials Inventory Journal Final Question Instructions X. An incomplete subsidiary ledger of materials inventory for May is as follows: RECEIVED ISSUED BALANCE Receiving Materials Report Unit Requisition Unit Number Quantity Price Number Quantity Amount Date Quantity Price Amount May 1 284 $30.00 $8,520 139 $32.90 May 4 91 373 May 10 44 117 38.80 May 21 97 100 May 27 Required: A. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO. Round your unit price answers to two decimal places and final answers to the nearest dollar. B. Determine the materials inventory balance at the end of May. Round your answer to the nearest dollar. C. Journalize the summary entry on May 31 to transfer materials to work in process. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar. D. Explain how the materials ledger might be used…What is the unit cost of inventory transferred out from Department B? P10.20 P12.70 P 6.10 P11.10 What is the unit cost of inventory transferred out from Department C? P18.41 P18.31 P18.82 P18.38Equivalent Units and Product Cost Report-Weighted Average Method In its first month's operations, Allred Company's Department 1 incurred charges of $ 360,000 for direct materials (15,000 units), $99,000 for direct labor, and $ 174,000 for manufacturing overhead. At month - end, 13, 200 units had been finished and transferred out. The remaining units were finished with respect to material but only 25% complete with respect to conversion costs. Assuming Allred uses the weighted average method and that materials are added at the beginning of the process and conversion costs occur evenly, compute the following: The equivalent units of materials and conversion costs. The cost per equivalent unit of materials and conversion costs. The total cost assigned to the units transferred out. The total cost assigned to the ending inventory. Prove that your solutions to requirements (c) and (d) sum to the total costs to be accounted for. Round average cost per equivalent unit to two decimal places, if…
- P10-5 Perth Amboy Corporation manufactures white board in a two-department processes. The Assembly Department uses weighted average costing and the stage of completion of overhead is unrelated to labor. The Finishing Department uses FIFO costing. Materials are added to the final units from Assembly and overhead is applied on the basis of direct labor. The cost accountant gathered the following data for the two departments during the month of October 2015: Assembly Department Units Beginning WIP inventory (100% complete for direct materials, 30% complete for direct labor and 40% complete for overhead) Units started in October 1,200 7,000 1,000 Ending WIP inventory (100% complete for direct materials, 60% complete for direct labor and 70% complete for overhead) OH Total DL P12,700 P10,300 80,000 P92,700 P80,300 P279,500 DM Costs Beginning WIP inventory Current period Total costs P34,500 P11,500 95,000 P106,500 70,000 245,000 Finishing Department Units 2,000 Beginning WIP inventory (100%…Product Quantity Cost Net Realizable Value Revolvers 17 124 159 Spurs 28 25 20 Hats 11 54 44 • 3,152. S3,402. $3,244. $3,747. At what amount should OldWest report its inventory?Assessment #1 _Cost Classification Inventory valuation Question 1 Part 1 Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. The accounting records of the business reflect the following data at December 31, 2023: Inventory 1/1/2023 Raw Materials $260,000 Work In Progress $333,800 Finished Goods $1,075,200 Other information: 31/12/2023 $230,000 $218,800 $615,000 Sales Revenue Factory supplies Direct Factory Labor Special Design Cost Raw Materials Purchased Plant janitorial service Depreciation: Plant & Equipment Plant Utilities Plant supervisor's salary Property Taxes R & D for Graphic Designs Office Utilities Insurance on Plant & Equipment Delivery truck driver's wages Depreciation: Delivery truck Administrative Wages & Salaries Sales Commission $5,765,000 45,000 735,000 15,000 540,000 52,000 165,000 385,000 480,000 300,000 70,500 165,000 120,000 125,000 52,000 850,150 97,650 The property taxes should be shared: 60% manufacturing & 40%…
- Assessment #1 _Cost Classification Inventory valuation Question 1 Part 1 Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. The accounting records of the business reflect the following data at December 31, 2023: Inventory 1/1/2023 31/12/2023 Raw Materials $260,000 $230,000 Work In Progress $333,800 $218,800 Finished Goods $1,075,200 $615,000 Other information: Sales Revenue Factory supplies Direct Factory Labor Special Design Cost Raw Plant janitorial service Depreciation: Plant & Equipment Purchased Plant Utilities Plant supervisor's salary Property Taxes ¹ R & D for Graphic Designs Office Utilities Insurance on Plant & Equipment Delivery truck driver's wages Depreciation: Delivery truck Administrative Wages & Salaries Sales Commission $5,765,000 45,000 735,000 15,000 540,000 52,000 165,000 385,000 480,000 300,000 70,500 165,000 120,000 125,000 52,000 850,150 97,650 ¹ The property taxes should be shared: 60% manufacturing & 40%…6:57 M IR1_MIDTERM_20201.pdf 66. Mocha Company uses the lower of cost or net realizable value method to value inventory. Data regarding the items in work in process inventory are presented below. Tarts 240,000 360,000 48,000 208,000 Pies 188,000 250,000 50,000 168,000 Mallows 300,000 360,000 68,000 318,000 Historical cost Selling price Estimated cost to complete Replacement cost Normal profit margin as a percentage of selling price What is the measurement of the work in process inventory? b. 694,000 25% 25%. 10% a. 676,000 c. 720,000 d. 728,000 11/12 IIIn presenting inventory on the balance sheet December 31, 2021, the unit cost under absorption costing is A. P2.50 B. P3.00 C. P3.50 D. P4.50
- Monaco manufacturing corp has the following account balances per ledger for the period ending December 31, 2019 Representation exp P10,000.00 Plant Supervision P126,750.00 Delivery expense P15,000.00 Purchase return P3,580.00 Depreciation -- Purchases P350,800.00 P62,800.00 Factory Building Raw Materials Depreciation office P25,000.00 Inventory, Dec. 31, P100,400.00 equipt 2019 Raw Materials Depreciation-Factory P9,460.00 Inventory, Jan 1, P101,640.00 / Equipment 2019 Repairs and Direct Labor P42,500.00 Maintenance - P76,480.00 factory equipt Salaries of office P29,220.00 P60,000.00 Factory Insurance and admin staff P46,200.00 Sales P1,100,000.00 Factory Utilities Finished Goods Sales return and P24,910.00 P5,000.00 Inventory, Jan. 1, allowances 2019 Selling and Administrative Indirect Labor P8,100.00 P26,490.00 ExpensesTB MC Qu. 05-131 (Algo) A company has the following products... A company has the following products in its ending Inventory. Compute lower of cost or market for inventory applied separately to each product Cost per Market per Unit Unit $ 726 $ 696 $ 526 $ 566 $ 676 $ 701 Product Quantity 10 15 20 Product A Product B Product CQUESTION 4 The following information was extracted from the accounting records of ABC Manufacturers for the year ended September 2020: UNITS Inventory at the beginning of the year Production for the year Sales for the year (at R75 per unit) Nil 20 000 18 250 Direct Materials cost per unit Direct Labour cost per unit Variable Manufacturing overheads per unit Variable selling and administrative cost per unit Fixed manufacturing overhead cost Fixed selling and administrative cost The company utilises the first-in-first-out method of inventory valuation. 21 7 8 182 000 77 000 REQUIRED: 4.1 Prepare the Income Statement using the Marginal Costing method. 4.2 Prepare the Income Statement using the Absorption Costing method.