Chapter 2 - Solutions

# Chapter 2 - Solutions - ACC 377 SUMMER 2010 CHAPTER 2...

This preview shows pages 1–4. Sign up to view the full content.

ACC 377 SUMMER 2010 CHAPTER 2 HOMEWORK SOLUTIONS Exercises 2. a. EOQ = 2CN C= cost of order K N= number of units required annually K = carrying cost per unit = 2(\$72)(360,000 units) 4 = 51,840,000 4 = 12,960,000 EOQ = 3,600 units b. Carrying cost = Average inventory x Carrying cost per unit Carrying cost = \$4 x 3,600 units/2 = \$7,200 Number of orders = Units required / EOQ = 360,000 / 3,600 = 100 orders Ordering cost = \$72/order x 100 orders = \$7,200 Total Cost \$14,400

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
4. DM (WIP) IM (FOH) Req #110 20,000 Req #111 18,000 Req #112 16,000 Req #113 1,800 Req #114 3,000 Req #115 9,000 Req #116 2,000 Req #117 1,300 Req #118 1,700 68,000 4,800 <date> Work in Process 68,000 Factory Overhead 4,800 Materials Inventory 72,800 To record materials requsitions
5. a. <date> Materials Inventory 200,000 Accounts Payable 200,000 To record materials purchases b. <date> WIP Inventory 175,000 Materials Inventory 175,000 To record materials requisitions - direct materials c. <date> Factory Overhead 12,000 Materials Inventory 12,000 To record materials requisitions - indirect materials d. <date> Materials Inventory 2,500 WIP Inventory 2,500 To record materials returned to storeroom e.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern