Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas’s fastest moving inventory item has a demand of 6000 units per year. the cost of each unit is $100.00, and the inventory carrying cost is $10.00 per unit per year. the average ordering cost is $30.00 per order. it takes about 5 days for an order to arrive, and demand for 1 week is 120 units (this is a corporate operation, there are 250 working days per year). a. what is the eoq? b. what is the average inventory if the eoq is used? c. what is the optimal number of orders per year? d. what is the optimal number of days in between any two orders? e. what is the annual cost of ordering and holding and holding inventory? f. what is the total annual inventory cost, including cost of the 6,000 units?

Eliminating entries (including goodwill impairment) and worksheets for various years on january 1, 2013, porter company purchased an 80% interest in the capital stock of salem company for$850,000. at that time, salem company had capital stock of $550,000 and retained earnings of $80,000.differences between the fair value and the book value of the identifiable assets of salem company were asfollows: fair value in excess of book valueequipment$130,000land65,000inv entory40,000the book values of all other assets and liabilities of salem company were equal to their fair values onjanuary 1, 2013. the equipment had a remaining life of five years on january 1, 2013. the inventory was sold in2013.salem company’s net income and dividends declared in 2013 and 2014 were as follows: year 2013 net income of $100,000; dividends declared of $25,000year 2014 net income of $110,000; dividends declared of $35,000required: a. prepare a computation and allocation schedule for the difference between book value of equity acquired andthe value implied by the purchase price. b.present the eliminating/adjusting entries needed on the consolidated worksheet for the year endeddecember 31, 2013. (it is not necessary to prepare the worksheet.)lo6lo1

Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is:

As a general rule, when accountants calculate profit they account for explicit costs but usually ignorea. certain outlays of money by the firm. b. implicit costs. c. operating costs. d. fixed costs.