Answer:
EOQ = 220.6052281 shirts rounded off to 221 shirts
The order should be placed after every 110 days.
Explanation:
The EOQ or economic order quantity is the optimum order level or quantity which minimizes the inventory related costs. This is the order quantity where the cost of ordering and the cost of holding the inventory is the minimum. The formula for EOQ is,
EOQ = √(2 * AD * O) / H
Where,
- AD refers to annual demand
- O is ordering cost per order
- H is holding cost per unit per year
Annual demand for t shirts (assuming 365 days per year) = 2 * 365 = 730
Holding cost per unit per year = 0.5 * 12 = $6
EOQ = √(2 * 730 * 200) / 6
EOQ = 220.6052281 shirts rounded off to 221 shirts
To calculate how frequently the order should be placed,we will calculate the number of orders per year by dividing the total annual demand by the EOQ.
Number of orders per year = 730 / 220.61
Number of orders per year = 3.309 or 3.31 orders per year
Number of days per order = 365 / 3.309
Number of days per order = 110.305 days or 110 days
Answer:
D. if profit were positive, then firms would enter, decreasing price, and if profit were negative, then firms would exit, increasing price.
Explanation:
Perfectly competitive firms are price takers, hence they cannot influence the price of their products.
Perfectly competitive industries have no barriers to entry or exist of firms ,so if in the short run, firms are earning economic profit, then firms would enter into the industry , decreasing price, and if profit were negative, then firms would exit, increasing price. This makes perfect competitive firms to earn zero economic profit in the long run.
Answer:
1 Cash 11,190,000
Discount on Note Payable 810,000
Note Payable 12,000,000
2- Interest Expense 810,000
Discount on Note Payable 810,000
3- Note Payable 12,000,000
Cash 12,000,000
Explanation:
In order to pass the Journal entry for issuance of Note Payable. First we need to calculate the Discount on issue of Bond Payable. The discount on note payable is calculated using the 12,000,000 x 9% x 9/12 = 810,000. In case of note payable is discount is interest expense for issuer hence on due corporation will pay full value of note to purchaser of note.
Answer: $1,014,300
Explanation:
The company wants to maintain 20% of the next month's needs as ending inventory.
One Miniwap requires 2.5 kg of Jurision to be made.
Materials purchased is;
= Ending inventory + Materials used - Begining inventory
Ending Inventory;
= 20% of September Jurision
= 20% * 21,300 * 2.5
= 10,650 kg
Materials used
= 2.5 kg * August Miniwaps
= 2.5 * 22,600
= 56,500 kg
Materials Purchased = 10,650 + 56,500 - 10,800
= 56,350 kg
Cost of Jurision is $18 per kilo
= 56,350 * 18
= $1,014,300
Answer:
The total shareholders’ equity at the end of Year 1 is $487,400
Explanation:
The computation of the ending total shareholders’ equity is shown below:
= Common stock value in exchange of cash + net income + net holding gains - dividend paid
= $442,400 + $98,000 + $1,000 - $54,000
= $487,400
While calculating the ending balance of shareholder equity we added the net income, net holding gains and deducted the dividend paid to the common stock value amount