ee Bhd practices proper inventory control to maintain its inventory at the optimum leve laterial A is one of the inventory items purchased by the company. The re-order level o laterial A is 1,500 kilograms and the re-order quantity is 1,300 kilograms. The lead time an sage are as follows: ead time: Usage: Minimum 1 week Minimum 600 kilograms per week 800 kilograms per week Average 1.5 weeks Maximum Maximum 2 weeks Required to calculate for Material A: 1. Minimum stock level Maximum stock lovol and
Q: Remote Company had the following information pertaining to inventory: Units Unit Price Total…
A: Average cost per unit = Total cost of goods available for sale / Total no. of units available for…
Q: The following lots of a particular commodity were available for sale during the year Beginning…
A: The stock of items in which firm deals are recorded as inventory in the books of the firm. The…
Q: A small hardware store uses a periodic review system to control inventory andcalculate order…
A: Periodic review system: Classic independent inventory system Inventory levels start at some…
Q: The Sterling Company shows the following information relating to one of its raw materials.…
A: Inventory:- The term inventory includes the raw material, that is used for the production of goods…
Q: he manager of a superior products ltd. is considering shifting from the weighted average cost method…
A: Solution: Computation of COGS and ending inventory - Periodic LIFO Particulars Cost of goods…
Q: Granger Supply, Inc., has two main areas of inventory, industrial supplies and industrial cleaning…
A: Income Statement: An income statement is one of the financial statements that display the financial…
Q: . A company does an ABC analysis of its inventory and calculates that out of 10,000items, 19% can be…
A: The number of counts is calculated multiplying number of items with count frequency per year. Every…
Q: Muscat Company has the following inventory information. Units Per unit price Iotal July 1 Beginning…
A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…
Q: Use the following information to answer the next two (2) items Your sales cut-off examination of…
A:
Q: A company reports the following beginning inventory and two purchases for the month of January. On…
A: FIFO is the inventory method which says that inventory which is purchased first will be sold first.…
Q: Telamark Company uses the moving weighted average method for Inventory costing. Requlred: The…
A: 1. Weighted Average Method - Under Weighted Average Method Inventory are valued at average cost of…
Q: ABC Enterprise uses a perpetual inventory system to monitor the inventory status and using the…
A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…
Q: Illini Company uses the weighted average cost assumption. On January 1, there were 180 units on hand…
A: Calculate the cost of ending inventory, if Company uses the weighted average cost assumption. First,…
Q: You have just been appointed as financial manager of Slow-Moving-Stock Limited. One of your main…
A: Inventory Turn Over ratio :— The inventory turnover ratio formula is equal to the cost of goods sold…
Q: In its first month of operations, Lily Company made three purchases of merchandise in the following…
A: Cost of the ending inventory under the average-cost method = Inventory on hand*Weighted-average…
Q: Monty Corp. reports the following for the month of June. Units Unit Cost Total Cost…
A: GIVEN Monty Corp. reports the following for the month of June. Units Unit Cost…
Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…
A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…
Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…
A: Last in first out (LIFO) method of inventory valuation gives preference to value of inventory…
Q: Perpetual: LIFO and Moving-Average The beginning inventory, purchases, and sales for Myrl Sign…
A: Perpetual inventory system: Under this inventory system, the records of inventory are continuously…
Q: An Accountant must design inventory ordering systems for two new raw material items - A31 and B31.…
A: Optimum order quantity for Material A31: EOQ = 2DS/H D= Annual Demand = Average weekly…
Q: Take me to the text Drago Company has a fiscal year end on December 31. The company has only one…
A: Cost of goods sold: It refers to the cost of direct material and direct labor use to produce goods…
Q: Indicate the most likely effect of the following changes in inventory management on the…
A: Inventory turnover represents the amount of times an organisation sells and substitutes the…
Q: interim financial statement. The rate of markup on cost is 25%. The following account balances are…
A: Solution: Cost of goods sold = sales / 125% = 744000/ 125% = $595,200
Q: Simplex Company has a fiscal year end on December 31. The company has only one product in inventory,…
A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…
Q: the owner likes to implement a new system of maintaining an inventory level will include a safety…
A:
Q: Tristan, Inc., uses the LIFO cost-flow assumption to value inventory. It began the current year with…
A: Particulars No. of units Rate per unit Total cost 9,500 units sold 8,000 $40 $320,000…
Q: Maintain inventory records Fire fox manufacturing has the following information in relation to…
A: 1. Following are the calculation of cost of goods sold and ending inventory by perpetual inventory…
Q: Assume Ava Co. has the following purchases of inventory during the first month of operations…
A: LIFO is last in first out inventory valuation method in which goods purchased at last in the…
Q: Accounts-receivable Jan. 1 P100,000 Accounts-receivable Dec. 31 P150,000 Inventory-Jan. 1…
A: Average collection period=Jan 1, receivables+Dec 31, receivables2Net sales×365=P100,000+P150,0002P…
Q: The Stilton Company has the following inventory and credit purchases during the fiscal year ended…
A: given that, goods available for sale = 640 + 350 + 230 = 1220 units number of units sold = 430 +…
Q: Alternative Inventory Methods Garrett Company has the following transactions during the months of…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Octopus Company provides you with the following information regarding its inventory: Maximum lead…
A: A reorder point (ROP) is the point at which your inventory must be replenished. In other words, it…
Q: ABC company started its operations this year and began with no inventory on hand. It provided the…
A: In first in first out (FIFO) method, the inventory purchased first is sold first. The inventory…
Q: The company uses the perpetual inventory method and started the month of November with 500 units of…
A: Under perpetual system moving average method, cost of units calculated in same manner as for…
Q: Fire fox manufacturing has the following information in relations to commodity for July…
A: 1. The company used perpetual inventory system and LIFO costing, determine cost of goods sold and…
Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…
A: FIFO, LIFO and weighted average are the three most common methods which are used for the recording…
Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting perlod but…
A: Lets understand some basics Inventory is the accounting of items, component parts and raw materials…
Q: The management of Mark Brothers Company has engaged you to assist in the preparation of year-end…
A:
Q: A company would like to classify its inventory systems using ABC inventory classification system The…
A: ABC method is the one which divide the suppliers as well as its inventory into the category grounded…
Q: Vaughn Manufacturing began using dollar-value LIFO for costing its inventory two years ago. The…
A: Solution: Computation of inventory at base year prices and change from prior year - David Davis…
Q: Balamb Corporation had the following transactions for the month: Calculate the ending inventory…
A: INTRODUCTION Periodic inventory system is the method of recording inventory. Under Periodic system…
Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…
A: According to IFRS, Inventory cost valuation is done based on FIFO, LIFO or Average costing method.
Q: Alta Ski Company’s inventory records contained the following information regarding its latest ski…
A: Solution: Introduction: Inventory means goods are available for sale and raw materials used in the…
Q: Gladstone Company tracks the number of units purchased and sold throughout each accounting period…
A: Solution 1a: Computation of COGS and ending inventory - Periodic LIFO Particulars Cost of goods…
Q: Quick-Copy Duplicating Company uses 110,000 reams of standard-size paper a year at its various…
A: Calculation of Economic Order Quantity (EOQ): Annual requirement of raw material (A) = 110,000 reams…
Q: The Quartz Company has been taking a physical inventory every quarter in order to prepare its…
A: 1. The gross profit method can be used to estimate the ending inventory for 2021. In this method,…
Q: Given the following information, formulate an inventory management system. The item is demanded 50…
A: Economic Order Quantity (EOQ) - It is a technique used to identify the optimal amount of inventory…
Q: Select the best answer for the following statement: A company typically takes its physical inventory…
A: In order to calculate ending inventory after the end of year for the purpose of accounting ,…
Q: Pineview Company ended the month of March with inventory of $26,000. Pineviewexpects to end April…
A: Inventory to be purchased in a particular period means inventory which can fulfill sales demand and…
Step by step
Solved in 2 steps
- DeForest Company had the following transactions for the month. Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)Bleistine Company had the following transactions for the month. Calculate the ending inventory dollar value for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Item cost Order cost Annual holding cost (N) Annual demand Average demand $ 11.00 $257.00 33 26,600 532 Standard deviation of weekly denand Lead time Service probability 30 units /order % of item cost units /week 2 week 98% a. Determine the order quantity and reorder point. (Use Excel's NORMSINV( ) function to find your z-value and then round that z- value to 2 decimal places. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.) Optimal order quantity units units Reorder point b. Determine the annual holding and order costs. (Do not round any intermediate calculations. Round your final answers to 2 decimal places.) Holding cost Ordering cost C. Assume a price break of $60 per order was offered for purchase quantities of 2,000 units per order. If you took advantage of this price break, how much would you save annually? (Do…
- A single inventory item is ordered from an outside supplier. The anticipated demand for this item over the next 12 months is 6, 12, 4, 8, 15, 25, 20, 5, 10, 20, 5, 12. Current inventory of this item is 4, and ending inventory should be 8. Assume a holding cost of $1 per period and a setup cost of $40. Determine the order policy for this item based on b. Least unit cost• The following time-phasing chart is available for a single item within an MRP system. Complete this chart by estimating inventory on hand and planned order release values. Lead time is 2 weeks, and order policy is 100 units, which means this part can be ordered only in 100-unit batches. Inventory replenishment is JIT lead times ar negligible. Week Number Gross Requirements Scheduled Receipt Inventory on Hand Planned Order Release 1 100 80 05 5 110 9 50 10Akira Company had the following transactions for the month. Sales for the month are $25 per unit. # of Units Cost per Unit Beginning Inventory 150 $10 Purchased Mar. 31 160 $12 Purchased Oct. 15 130 $15 Ending Inventory 50 ? In the table below, calculate the dollar value for the period for each of the following items using the listed cost allocation methods and using periodic inventory updating. PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" with commas as needed (i.e. $12,345), except for the Weighted Average cost per unit, which will be rounded to two decimal places and include "$". Weighted average cost per unit = ___?_____ per unit Cost Allocation Method Cost of Goods Available Cost of Goods Sold Ending Inventory Sales Gross Margin First-in, First-out (FIFO) Last-in, First-out (LIFO) Weighted Average (AVG)
- Week 3. 4. 6. Gross Requirements Scheduled Receipts Projected Ending Inventory: 100 Net Requirements Planned Receipts Planned Orders 400 400 400 400 Lead Time =1 week 100 Minimum Order = 500 Consider the above incomplete Material Requirements Planning (MRP) record. There are 100 units in inventory at the start of week 1, production has a one-week lead time, and the minimum order quantity is 500 units. What are the Week 2 values (in order) for Projected Ending Inventory (PEI), Net Requirements (NR), Planned Receipts (PR), and Planned Orders (PO)? Note: Don't forget to account for the Scheduled Receipts in Week 1. O PEI - 300; NR = 200; PR = 500; PO = 500 O PEI - 100; NR - 200; PR = 500; PO = 500 O PEI - 300; NR - 200; PR = 500; PO = 100 O PEI - 300; NR - 400; PR -500; PO - 500 505Akira Company had the following transactions for the month. Number of units Cost per Unit Beginning inventory 150 $ 10 Purchased Mar. 31 160 12 Purchased Oct. 15 130 15 Ending inventory 50 ? Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. first-in, first-out (FIFO) last-in, first-out (LIFO) weighted average (AVG)Octopus Company provides you with the following information regarding its inventory: Maximum lead time 5 weeks Minimum lead time 2 weeks Normal lead time 3 weeks Normal weekly usage 4 000 units Interest rate 5% Cost price per unit R20 per unit Inventory carrying cost R7 per unit Ordering cost R30 per order Maximum weekly usage 4 000 units Minimum weekly usage 3 000 units Required: a).Calculate EOQ b). safety stock c). total ordering cost
- The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows. Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. Round unit cost to two decimal places, if necessary. Round all total cost amounts to the nearest dollar. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. Total sales $_______________ Total cost of goods sold $_______________ Gross profit $_______________ 3. Determine the ending inventory cost as of March 31.$___________Akira Company had the following transactions for the month. Number Cost of Units per Unit Beginning Inventory 140 $10 Purchased Mar. 31 160 13 Purchased Oct. 15 140 16 Ending Inventory 70 ? Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount. Ending Inventory A. First-in, First-out (FIFO) $4 B. Last-in, First-out (LIFO) $4 C. Weighted Average (AVG)ACTIVITY 3- ACCOUNTING FOR MATERIALS 1. Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It carries a 2,500 gallon safety stock of material and its lead time is 3 business days. What is the order point for Material Y? 2. The EOQ for Material is 7,500 gallons, and the carrying cost per gallon per year is P.25. What is the total annual carrying cost for Material? 3. Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500 kilos, and its order point is 1,500 kilos. What is the lead time, assuming daily usage is 50 kilos? 4. Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500 kilos, and its order point is 1,500 kilos. What would be the total annual carrying costs, assuming the carrying cost per unit is P.80 5. The following are data of materials inventory for the year 2020 of Mars Corp: Number of pounds required annually Cost of placing an order Annual…