Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 10, Problem 17E
a.
To determine
Whether the new inventory system that is available to Person L is approximate or pure just in the time system.
b.
To determine
Calculate the amount of inventory holding cost that would be eliminated by Person L.
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Students have asked these similar questions
Question 6
An Accountant must design inventory ordering systems for two new raw material items - A31 and B31. The
company operates 50 weeks a year. The accountant has gathered the following information about the two
items:
A31
B35
80 units
60 units
Average weekly demand
Unit purchase price
$20
$30
Annual holding cost
20% on purchase
30% on purchase
price
price
Ordering cost
$80 per order
$30 per order
Lead time
2 weeks
2 weeks
Current order size
300 units
80 units
250 units
90 units
Maximum weekly demand
Required:
(i)
Determine the optimal order quantity for material items - A31 and B35 using the economic
order quantity (EOQ) model. Show your calculations.
QUESTION 1
An animal shelter plans to sell T-shirts bearing their logo at an upcoming crafts
fair. They find a supplier who charges $2.85 a piece for orange T-shirts. Printing
the logo on the shirt requires an additional $0.70 per shirt. The group places an
order for 300 T-shirts and pays a shipping fee of $22 upon receiving the T-shirts.
The journal entry on the receipt date should include:
a. A credit to inventory of $877
O b. A děbit to inventory of $855
O c. A credit to inventory of $1,065
O d. A debit to inventory of $1,087
Saved
O Homework
Baird Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to
purchase the following inventory:
April
$105,000
June
May
$125,000
Required purchases (on account)
$137,000
Baird Books' accountant prepared the following schedule of cash payments for inventory purchases. Baird Books' suppliers require
that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following
the month of purchase.
Required
a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarte
Complete this question by entering your answers in the tabs below.
Required A
Required B
Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
Schedule of Cash Payments for…
Chapter 10 Solutions
Survey Of Accounting
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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