The simple economic order quantity (EOQ) model shows how much to order (i.e., lot size) in terms of holding costs, setup (ordering) costs, and total inventory cost.  In terms of this model, why is it necessary to reduce setup cost if we desire smaller lot sizes? Draw the inventory cost curves diagram and fully explain.

The Pro Company had no beginning inventory.

Cost of production this month:

Material $1,000

Conversion $2,600

Total $3,600

Completed units this month: 300

Partially completed units in the ending inventory: 100

Required:

What is the cost of the completed units?

What is the cost of the ending inventory?

Assume now that the units in the ending inventory are 60% complete.

nole, inc manufactures and sells two products: product W8 and product N0. data concerning the expected production of each product and the expected total direct labor hours (DLHs) required to produce that output appear below:

expected production direct labor hours per unit total direct labor hours

product W8 100 9.0 900

produdct N0 1,000 11.0 11,000

total direct labor hours 11,900

the direct labor rate is $17.40 per DLH. the direct materials cost per unit for each product is given below:

direct materials cost per units

product W8 $176.40

product N0 $280.50

the company is considering adopting an activity based costing system with the following activity cost pools, activity measures, and expected activity:

expected activity

activity cost pools activity measures estimated overhead cost product W8 product N0 total

labor related DLHs $ 461,720 900 11,000 11,900

machine setups setups 25,865 300 400 700

order size MHs 796,220 4,000 4,200 8,200

1,283,805

1. if the company allocates all of its overhead based on direct labor hours using its traditional costing method, the predetermined overhead rate would be closet to: $38.80 per DLH; $36.95 per DLH; $97.10 per DLH; $107.88 per DLH; and

2. the overhead applied to each unit of product W8 under activity based costing is closet to: $3,884.00 per unit : $1,167.10 per unit: $97092 per unit: $4,344.05 per unit. and

3. which of the following statements concerning the unit product cost of product N0 is true

a. the unit product cost of product N0 under traditional costing is less that its unit product cost under activity based costing by $3,494.65;

b. the unit product cost of product N0 under traditional costing is greater than its unit product cost under activity based costing by $3,494.65:

c. the unit product cost of product N0 under traditional costing is less than its unit product under activity based costing by $337.28:

d. the unit product cost of product N0 under traditional costing is greater than its unit product cost under activity based costing by $337.28.

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.3× Days sales outstanding: 73.0 daysa Inventory turnover ratio: 5× Fixed assets turnover: 3.0× Current ratio: 2.0× Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest dollar. Balance Sheet Cash $ Current liabilities $ Accounts receivable Long-term debt 48,000 Inventories Common stock Fixed assets Retained earnings 60,000 Total assets $240,000 Total liabilities and equity $ Sales $ Cost of goods sold $

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3x Current ratio: 1.9x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $ Current liabilities $ Accounts receivable Long-term debt 50,000 Inventories Common stock Fixed assets Retained earnings 62,500 Total assets $250,000 Total liabilities and equity $ Sales $ Cost of goods sold $

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.4x Days sales outstanding: 36.5 daysa Inventory turnover ratio: 4x Fixed assets turnover: 3x Current ratio: 1.9x Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 15% aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Balance Sheet Cash $ Current liabilities $ Accounts receivable Long-term debt 50,000 Inventories Common stock Fixed assets Retained earnings 62,500 Total assets $250,000 Total liabilities and equity $ Sales $ Cost of goods sold $

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.1×
Days sales outstanding: 73.0 days^a
Inventory turnover ratio: 4×
Fixed assets turnover: 3.0×
Current ratio: 2.5×
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 30%
^aCalculation is based on a 365-day year.

Do not round intermediate calculations. Round your answers to the nearest dollar.

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.2x
Days sales outstanding: 41.5 days^a
Inventory turnover ratio: 7x
Fixed assets turnover: 3x
Current ratio: 1.5x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 35%
^aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answers to the nearest cent.

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.6x
Days sales outstanding: 30.5 days^a
Inventory turnover ratio: 5x
Fixed assets turnover: 3.5x
Current ratio: 1.7x
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 25%
^aCalculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.