AA Manufacturing produces component X that is supplied to the assembly of Product A and Product B. Two units of X are needed for assembly of one unit of A and three units of X are needed for assembly of one unit of B. The weekly demand for Product A is normally distributed with a mean of 15 and standard dev of 4 and the weekly demand for product B is normally distributed with a mean of 10 and standard dev of 2. Assume that the demands for product A and B are independent. The lead time to produce Component X is 4 weeks. AA Manufacturing decides to use a (Q, R) Policy to manage the inventory of X. If on hand inventory is not enough to meet demand, the excess demand is backordered. AA’s service goal is to limit the demand met through backorders to at least 5% of the total demand. The fixed cost of ordering Component X is $800. The fixed cost of ordering Component X is $800. The holding cost of Component X is $5 per unit per week.

Required:
a. What are the mean and std dev of the weekly demand for Component X?
b. What are the mean and the std dev of the lead time demand for component X?
c. Determine the order quantity (Q) and the reorder level (R) for component X that will satisfy AA’s service level objective.
d. What is the probability that AA will un out of stock of X in a given week.

Alpha company uses the periodic inventory system for purchase & sales of merchandise. discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. unless otherwise noted, fob destination will apply to all purchases & sales. the value of inventory is based on periodic system. on january 1, 2016, beginning inventory consisted of 350 units of widgets costing $10 each. alpha prepares monthly income statements. the following events occurred during the month of jan.: dateactivitya. jan. 3purchased on account 350 widgets for $11 each. b.jan. 5sold on account 400 widgets for $30 each. paid freight out with petty cash of $150.c. jan. 10purchased on account 625 widgets for $12 each. d.jan. 11shipping cost for the january 10 purchased merchandise was $400 was paid with a cheque by alpha directly to the freight company. e.jan. 12returned 50 widgets received from jan. 10 purchase as they were not the correct item ordered. f.jan. 13paid for the purchases made on jan. 3.g. jan. 21sold on account 550 widgets for $30 each. paid freight out with petty cash of $250.h. jan. 22authorize credit without return of goods for 50 widgets sold on jan. 21 when customer advised that they were received in defective condition. i.jan. 25received payment for the sale made on jan. 5.j. jan. 26paid for the purchases made on jan. 10.k. jan. 31received payment for the sale made on jan. 21.use this information to prepare the general journal entries (without explanation) for the january events. if no entry is required then enter the date and write "no entry required."