You are asked by a company to classify its stock using the ABC system. Following is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are asked by a company to classify its stock using the ABC system. Following is a list of items the company stocks and the annual demand and unit value for each. Item Annual Usage Unit Cost (S) A 100 8 185 15 800 33 92 900 46 500 F 33 678 G 208 398 H 500 42 295 1543 J 360 20 K 240 210 L 67 2156 215 503 102 63 Classify the inventory items according to the ABC approach using dollar value of annual demand. Explain your calculation process and results below. You are asked by a company to classify its stock using the ABC system. Following is a list of items the company stocks and the annual demand and unit value for each. Item Annual Usage Unit Cost (S) A 100 8 185 15 800 33 92 900 46 500 F 33 678 G 208 398 H 500 42 295 1543 J 360 20 K 240 210 L 67 2156 215 503 102 63 Classify the inventory items according to the ABC approach using dollar value of annual demand. Explain your calculation process and results below.
Expert Answer:
Answer rating: 100% (QA)
Annual demand calculated as follows ITEM USAGE UNIT COST ANNUAL DEMAND ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these accounting questions
-
Following is a list of items taken from the December 31, 2014, balance sheet of Reagan Company (amounts omitted): Accounts payable Accrued expenses Accumulated depreciationbuildings Accumulated...
-
Following is a list of items taken from the December 31, 2017, balance sheet of Reagan Company (amounts omitted): Accounts payable.......................................Goodwill Accrued...
-
The following is a list of items that could be included in the intangible assets section of the statement of financial position: 1. An investment in a subsidiary company 2. Timberland 3. The cost of...
-
In Exercises determine whether the statement is true or false. If it is false, explain why or give an example that shows it is false. The curve represented by the parametric equations x = t and y =...
-
In the Appendix to Chapter 4, the equations of the IS and LM curves are given as follows: IS: Y = k(Ap - br) LM: Y = [(Ms/P) + fr]/h Here, k = 1/[s(1 - t) + t + nx]. Let Ap = Ca - Ta + Ip + G + NXa,...
-
A moveable steel stand supports an automobile engine weighing W = 750 lb as shown in figure part (a). The stand is constructed of 2.5 in. ( 2.5 in. ( 1/8 in. thick steel tubing. Once in position the...
-
Fill in the Blank. The moving elements of a reciprocating engine are the crank, the connecting rod, and the ____________.
-
This problem continues the Daniels Consulting situation from Problem P10-23 of Chapter 10. Daniels Consulting believes the company will need to borrow $300,000 in order to expand operations. Daniels...
-
While scrolling through your favorite social media site, apicture of Philodendron ?a common houseplant?catchesyour eye. Your friend says about the photo, ?This houseplant and Iare best friends. It?s...
-
Problem #12: Planning and Control Don't-Cha-Wanna-a-Coffee, a large-scale coffee company that has a chain of 125 retail coffee stores throughout New England, was embroiled in an ethics scandal 3...
-
A series of payments increasing at a constant rate of 1.5% are made at the end of each quarter 10 years to resolve a loan issued today. The size of the first deposit is $1,300 and the fund earns...
-
How do guidelines treat the income of a child?
-
Explain the no-fault ground of living separate and apart.
-
Do you think the emergency jurisdiction provision of the UCCJEA might encourage parents to flee with children in the absence of a genuine emergency situation in order to try and gain an advantage in...
-
How do guidelines typically treat income of the custodial parent's new partner?
-
What reforms did the Acts accomplish? What aspects of the common law marital relationship did they leave untouched?
-
How do cognitive biases and heuristics influence executive decision-making processes, and what strategies can leaders employ to mitigate their impact and foster rational decision-making?
-
What is an access control list?
-
Mikeska Companies purchased equipment for $108,000 from Power-line Manufacturing on January 1, 2012. Mikeska paid $18,000 in cash and signed a five-year, 5% installment note for the remaining $90,000...
-
Neville Company decides at the beginning of 2014 to adopt the FIFO method of inventory valuation. It had used the LIFO method for financial and tax reporting since its inception on January 1, 2012,...
-
Cayman Diving, Inc., needs to acquire a new dive boat. The seller will accept a noninterest- bearing note for $400,000 due in four years or $250,000 in cash. The companys incremental cost of...
-
Two machines \(X\) and \(Y\) were used to produce two types of plastic polymers, PPET and PAMI. The polymers were produced using materials BA and PP. The production was run 3 times. The \(y\) values...
-
The effect on engine wear of oil viscosity, temperature, and a special additive was tested using a \(2^{3}\) factorial design. Given the following results from the experiment, Interpret the effects...
-
An engineering student wanted to know which factors influence the time (in seconds) for his car to go from 0 to 30 to 0 miles per hour. Factor \(A\) was the launch, which was either no wheel spin or...
Study smarter with the SolutionInn App