JYP Store purchases shirts printed with GOT7 name and logo from a vendor. The vendor sells the shirts to the store for RM40 each. The cost to the store for placing an order is RM110, and the annual carrying cost is 20% of the cost of the shirt. Jackson, the store manager, estimates that 1,600 shirts will be sold during the year. The vendor has offered the store the following volume discount in Table 3. Table 3: Discount schedule [Jadual 3: Jadual diskaun] ORDER SIZE 1- 299 300 – 500 501 and more DISCOUNT 0% 2% 4% (i) Calculate optimal order quantity based on the quantity discount information. [Hitungkan kuantiti pesanan optimal berdasarkan maklumat jadual diskaun ] Calculate total annual inventory cost. [Hitungkan kos inventori tahunan total.) (ii) (iii) Determine the best order size of shirts. [Tentukan satz tempahan baju yang terbatk.]
JYP Store purchases shirts printed with GOT7 name and logo from a vendor. The vendor sells the shirts to the store for RM40 each. The cost to the store for placing an order is RM110, and the annual carrying cost is 20% of the cost of the shirt. Jackson, the store manager, estimates that 1,600 shirts will be sold during the year. The vendor has offered the store the following volume discount in Table 3. Table 3: Discount schedule [Jadual 3: Jadual diskaun] ORDER SIZE 1- 299 300 – 500 501 and more DISCOUNT 0% 2% 4% (i) Calculate optimal order quantity based on the quantity discount information. [Hitungkan kuantiti pesanan optimal berdasarkan maklumat jadual diskaun ] Calculate total annual inventory cost. [Hitungkan kos inventori tahunan total.) (ii) (iii) Determine the best order size of shirts. [Tentukan satz tempahan baju yang terbatk.]
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 11RE
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Question
![JYP Store purchases shirts printed with GOT7 name and logo from a vendor. The vendor
sells the shirts to the store for RM40 each. The cost to the store for placing an order is
RM110, and the annual carrying cost is 20% of the cost of the shirt. Jackson, the store
manager, estimates that 1,600 shirts will be sold during the year. The vendor has offered
the store the following volume discount in Table 3.
Table 3: Discount schedule
[Jadual 3: Jadual diskaun]
ORDER SIZE
DISCOUNT
1- 299
300 – 500
0%
2%
501 and more
4%
(i)
Calculate optimal order quantity based on the quantity discount information.
[Hitungkan kuantiti pesanan optimal berdasarkan maklumat jadual diskaun.]
(ii)
Calculate total annual inventory cost.
[Hitungkan kos inventori tahunan total.]
(iii)
Determine the best order size of shirts.
[Tentukan saiz tempahan baju yang terbaik]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4bf5e3c-a14a-4ae3-8b41-bd3e41d0eeee%2F856dcca2-a73a-43bf-a3df-7a375d87a999%2F3s466w_processed.jpeg&w=3840&q=75)
Transcribed Image Text:JYP Store purchases shirts printed with GOT7 name and logo from a vendor. The vendor
sells the shirts to the store for RM40 each. The cost to the store for placing an order is
RM110, and the annual carrying cost is 20% of the cost of the shirt. Jackson, the store
manager, estimates that 1,600 shirts will be sold during the year. The vendor has offered
the store the following volume discount in Table 3.
Table 3: Discount schedule
[Jadual 3: Jadual diskaun]
ORDER SIZE
DISCOUNT
1- 299
300 – 500
0%
2%
501 and more
4%
(i)
Calculate optimal order quantity based on the quantity discount information.
[Hitungkan kuantiti pesanan optimal berdasarkan maklumat jadual diskaun.]
(ii)
Calculate total annual inventory cost.
[Hitungkan kos inventori tahunan total.]
(iii)
Determine the best order size of shirts.
[Tentukan saiz tempahan baju yang terbaik]
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