year, the first of which is to be run immediately. Libations Corporation has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous.If Libations Corporation does not maintain a safety stock, the estimated total carrying cost for the flag displays for the coming year isStudent Answer:$2,667.$2,000.$1,600.$1,333.Instructor Each production run is 100,000/60 = 1666.67Average inventory is 1666.67/2 = 833.33Carrying cost is 833.33 x $1.60 = $1,333
Points Received:6 of 6 Comments:Question 5.Question :(TCO 6) Blaster began operations in June 20XX. Blaster manufactures vehicle seat covers using a just-in-time production system supported by a backflush costing system. This system has two trigger points: (1) the purchase of raw materials, and (2) the sale of finished good units. Standard unit costs are $40 for raw materials and $25 for conversion costs. Blaster writes off any underallocated or overallocated conversion costs immediately. The following data were available for June 20XX.Production of good units19,800Sales of good units19,750Purchases of raw materials [20,000 units at $40]$800,000Conversion costs incurred$496,000The June cost of goods sold isStudent $1,283,750.