Question
In: Mechanical Engineering
A gourmet coffee shop in downtown Vancouver uses a Periodic Inventory System and is open 200...
A gourmet coffee shop in downtown Vancouver uses a Periodic Inventory System and is open 200 days a year. They sell on an average 75 pounds of KONA coffee beams a day. (Demand can be assumed to be distributed normally with a standard deviation of 15 lbs. per day.) After (fix cost = $16 per order), beans are always shipped from Hawaii within exactly 4 days. Per-pound annual holding costs for the beans are $3 and the cycle service level established by management is 98%. a. What is the economic order quantity (EOQ) for Kona coffee beans? b. Determine the Periodic Review Interval? c. What level of safety stock is required? d. What is the Target Inventory Level that is required to achieve these results? e. What are the total annual holding costs of stock for Kona coffee beans? f. What are the total annual ordering costs for Kona coffee beans? g. At the time the inventory was taken, the on hand was 300 lbs with the schedule receipts at 250 lbs with no back order. How much should the company order?
Solutions
samet mamat answered 1 year agoRelated Solutions
Periodic Inventory by Three MethodsDymac Appliances uses the periodic inventory system. Detailsregarding the inventory...
Periodic Inventory by Three MethodsDymac Appliances uses the periodic inventory system. Details
regarding the inventory of appliances at January 1, purchases
invoices during the next 12 months, and the inventory count at
December 31 are summarized as follows:Required:1. Determine the cost of the inventory on
December 31 by the first-in, first-out method.If the inventory of a particular model comprises one entire
purchase plus a portion of another purchase acquired at a different
unit cost, use a separate line for each...
Q1. Maia's Bike Shop uses the periodic inventory system and had the following transactions during the...
Q1. Maia's Bike Shop uses the periodic
inventory system and had the following transactions during the
month of May:
May 3
Sold merchandise to a customer on credit for $600, terms 2/10,
n/30. The cost of the merchandise sold was $350.
May 4
Sold merchandise to a customer for cash of $425. The cost of the
merchandise was $250.
May 6
Sold merchandise to a customer on credit for $1,300, term 2/10,
n/30. The cost of the merchandise sold was...
Capwell Corporation uses a periodic inventory system
Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2011, its fiscal-year end, based on a physical count, was determined to be $326,000. Capwell's unadjusted trial balance also showed the following account balances: Purchases, $620,000; Accounts payable; $210,000; Accounts receivable, $225,000; Sales revenue, $840,000. The internal audit department discovered the following items:1. Goods valued at $32,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase.2. Purchases...
Broadhead Company uses a periodic inventory system.
Broadhead Company uses a periodic inventory system. At the end
of the annual accounting period, December 31 of the current year,
the accounting records provided the following information for
product 2: Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.
Exercise 2: Inventory-Related Calculations in a Periodic System The Travalent Company uses the periodic inventory system. The...
Exercise 2: Inventory-Related Calculations in a Periodic
System
The Travalent Company uses the periodic inventory
system. The following information is taken from their
records. Certain data have been intentionally omitted.
Required: Compute the missing numbers.
2018
2019
2020
Sales
$4,000
$4,200
Sales Discounts
(20)
(25)
(30)
Sales Returns
(10)
(20)
(15)
Net Sales
Beginning Inventory
1,000
1,345
Purchases
3,000
2,700
Freight-In
150
200
250
Purchase Returns
(200)
(250)
(200)
Purchase Discounts
(100)
(150)
Net Purchases
3,000
Cost of Goods Available for...
Periodic Inventory by Three Methods Dymac Appliances uses the periodic inventory system. Details regarding the inventory...
Periodic Inventory by Three Methods
Dymac Appliances uses the periodic inventory system. Details
regarding the inventory of appliances at January 1, purchases
invoices during the next 12 months, and the inventory count at
December 31 are summarized as follows:
Purchases Invoices
Model
Inventory,
January 1
1st
2nd
3rd
Inventory Count,
December 31
A10
__
4 at
$ 64
4 at
$ 70
4 at
$ 76
6
B15
8 at
$ 176
4 at
158
3 at
170
6 at...
Periodic Inventory by Three Methods Dymac Appliances uses the periodic inventory system. Details regarding the inventory...
Periodic Inventory by Three Methods
Dymac Appliances uses the periodic inventory system. Details
regarding the inventory of appliances at January 1, purchases
invoices during the next 12 months, and the inventory count at
December 31 are summarized as follows:
Purchases Invoices
Model
Inventory,
January 1
1st
2nd
3rd
Inventory Count,
December 31
A10
__
4 at
$ 64
4 at
$ 70
4 at
$ 76
6
B15
8 at
$ 176
4 at
158
3 at
170
6 at...
Periodic Inventory by Three Methods Dymac Appliances uses the periodic inventory system. Details regarding the inventory...
Periodic Inventory by Three Methods
Dymac Appliances uses the periodic inventory system. Details
regarding the inventory of appliances at January 1, purchases
invoices during the next 12 months, and the inventory count at
December 31 are summarized as follows:
Purchases Invoices
Model
Inventory,
January 1
1st
2nd
3rd
Inventory Count,
December 31
A10
__
4 at
$ 39
4 at
$ 42
4 at
$ 45
5
B15
8 at
$ 86
4 at
77
3 at
83
6 at...
Periodic Inventory by Three Methods Dymac Appliances uses the periodic inventory system. Details regarding the inventory...
Periodic Inventory by Three Methods
Dymac Appliances uses the periodic inventory system. Details
regarding the inventory of appliances at January 1, purchases
invoices during the next 12 months, and the inventory count at
December 31 are summarized as follows:
Purchases Invoices
Model
Inventory,
January 1
1st
2nd
3rd
Inventory Count,
December 31
A10
__
4 at
$ 64
4 at
$ 70
4 at
$ 76
6
B15
8 at
$ 176
4 at
158
3 at
170
6 at...
Periodic Inventory by Three Methods Dymac Appliances uses the periodic inventory system. Details regarding the inventory...
Periodic Inventory by Three Methods
Dymac Appliances uses the periodic inventory system. Details
regarding the inventory of appliances at January 1, purchases
invoices during the next 12 months, and the inventory count at
December 31 are summarized as follows:
Purchases Invoices
Model
Inventory,
January 1
1st
2nd
3rd
Inventory Count,
December 31
A10
__
4 at
$ 36
4 at
$ 39
4 at
$ 42
5
B15
8 at
$ 86
4 at
77
3 at
83
6 at...
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