DAT, Inc., produces digital audiotapes to be used in the consumer audio division. DAT lacks...
Question:
DAT, Inc., produces digital audiotapes to be used in the consumer audio division. DAT lacks sufficient personnel in its inventory supply section to closely control each item stocked, so it has asked you to determine an ABC classification.
Here is a sample from the inventory records
| AVERAGE MONTHLY DEMAND | ITEM PRICE PER UNIT |
| 400 | $8.00 |
| 2,300 | 14.00 |
| 1,000 | 22.00 |
| 300 | 10.00 |
| 4,000 | 4.00 |
| 1,400 | 28.00 |
| 900 | 6.00 |
| 2,400 | 11.00 |
| 800 | 5.00 |
| 10 | 16.00 |
| 1,800 |
Develop an ABC classification for these 10 items
Inventory record
Inventory is the main thing in the organization so that this is used to monitor the flow of inventory in an organization for the smooth movement in the inter-department of inventory.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer| Calculation of percentage | |||
|---|---|---|---|
| Items | Average monthly demand | Item price per unit | Total amount |
| 1 | 400 | ... | |
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Net Realizable Value of Inventory: Definition & Method
from
Chapter 6 / Lesson 14
13K
Understand what net realizable value is and learn its different uses. Know how to compute NRV through its formula and through its step-by-step calculations.
Related to this Question
- Valotic Tech Inc. sells electronics over the Internet. The Consumer Products Division is organized as a cost center. Required: 1. Prepare a budget performance report for the director of the Consumer
- Import Distributors, Inc. (IDI), imported appliances and distributed them to retail stores in the Rocky Mountain States. IDI carried three broad lines of merchandise audio equipment (tuners, tape deck
- Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, t
- Bostonian Inc. has a number of divisions, including Delta Division and ListenNow Division. The ListenNow Division owns and operates a line of MP3 players. Each year the ListenNow Division purchases co
- Production Budget True Tab Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Small scale Large sc
- Buy Best Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, the sales increased by $31,875 from the planned level of $1,
- Buy Best Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, the s
- Stanco Inc. has two divisions, Electronics and Clocks. The Electronics Division (which is operating at capacity) , makes a specialized circuit borad called SA5 which it sells to its regular customers
- TEB, Inc., which manufactures video games, consists of two divisions, each operating as a profit center. Division A makes a component that is needed by Division B; however, if the price from Division A is too high, Division B has indicated it would purcha
- Mount Inc. was a hardware store that operated in Boise, Idaho. Management made some poor inventory acquisitions that loaded the store with unsalable merchandise. Due to the decline in revenues, the
- (CMA) Parkside Inc. has several divisions that operate as decentralized profit centers. Parkside s Entertainment Division manufactures video arcade equipment using the products of two of Parkside s other divisions. The Plastics Division manufactures plast
- SoundLab Inc. manufactures two models of speakers, DL and XL. Based on the following production and sales data for September 2016, prepare (a) a sales budget and (b) a production budget: DL XL Estim
- T-Comm makes a variety of products. It is organized in two divisions, North and South. South Division normally sells to outside customers but, on occasion, also sells to the North Division. When it do
- SEMO Inc. has a division located in Spain and another in the U.S. The Spanish division produces a part needed for the product made by the U.S. division. There is substantial excess capacity in the Spanish division. The tax rate of the Spanish division is
- Splendid Stereo, Inc., is a large retailer of stereo equipment. The controller is about to prepare the budget for the first quarter of 20x5. Past experience has indicated that 75 percent of the store'
- Soundlab, Inc. manufactures two models of speakers: DL and XL. Based on the following production and sales data for November 2014, prepare a sales budget and a production budget.
- Ace Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her examination of Ace's financial statements for the year e
- You are in a meeting regarding the pro forma forecasting of business for your company, Ferd Berfel Franistats Incorporated. It is a high volume and vital electronic element needed in many products and
- Bowman Company manufactures cooling systems and they produce all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and B
- Blakefield, Inc. has grown significantly over the past decade through innovation and acquisition. Information on several of its divisions follows: 1) The OlliePods division sells children's recreatio
- Two divisions of a CMI are involved in a dispute. Division A purchases Part 101 and Division B purchases Part 201 from a third division, C. Both divisions need the parts for products that they assembl
- Backus, Inc., makes and sells many consumer products. The firm's average contribution margin ratio is 22%. Management is considering adding a new product that will require an additional $12,500 per mo
- Backus, Inc., makes and sells many consumer products. The firm's average contribution margin ratio is 25%. Management is considering adding a new product that will require an additional $13,000 per mo
- Rhetorix, Inc., produces stereo speakers. Each unit (a pair of speakers) sells for $870. Below is information on production/sales and costs for 2013: Use the high-low method to identify the fixed and
- Corporal Inc. and Admiral Company compete with each other in the personal computer market. Corporal's primary strategy is to assemble computers to customer orders, rather than for inventory. Thus, for
- Wallen Products Inc. has just purchased a small company that specializes in the manufacture of electronic tuners that are used as a component part of LCD TVs. Wallen Products is a decentralized compan
- Red Deer Electronics Inc. manufactures a variety of printers, scanners, and fax machines in its two divisions: the PSF Division and the Components Division. The Components Division produces electronic
- Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month. Depreciation on factory equipment $850 Depreciation on CEO's company car $120 Speakers used
- Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month. Depreciation on factory equipment $850 Depreciation on CEO's company car 190 Speakers used
- Poo Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units High F 10,000 Great P 16,000 National uses a volume-based costing syst
- House Audio Shop is a retailer of high-quality audio equipment. It is currently the end of May 2013. The company's retained earnings balance as of May 1, 2013, was $56,000. During May, House Audio Shop earned $10,000 in revenue and incurred $7,500 in expe
- CA24-2. (Disclosures Required in Various Situations) Ace Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her ex
- Galati Products, Inc., has just purchased a small company that specializes in the manufacture of electronic tuners that are used as a component part of TV sets. Galati Products, Inc., is a decentralized company, and it will treat the newly acquired compan
- At the end of the last HW assignment, Mr.Speakers had been organized into a corporation and had continued making and selling a small number of headphones. In order to expand production capabilities, M
- Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purchase
- Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and B
- The Duller Edge Inc. assembles and sells MP3 players. The company began operations on May 1, 2014, and operated at 100% of capacity during the first month. The following data summarize the results for
- The Duller Edge Inc. assembles and sells MP3 players. The company began operations on May 1, 2012, and operated at 100% of capacity during the first month. The following data summarize the results for
- Audio Visual Corporation Audio Visual Corporation (AVC) manufactures and sells visual display equipment. Headquartered in Boston, it has seven sales offices with nearby warehouses that carry its inven
- Affordable Electronics Inc. manufactures medium-quality, reasonably priced DVD players. The company uses standards to control its costs. The labour standards that have been set for one player are as follows: Standard Hours Standard Rate per Hour Standard
- Tech, Inc., sells its brand-name computer equipment directly to its franchised retailers. Depending on how existing franchisees do, Tech may limit the number of franchisees in a given area to reduce intrabrand competition. Tech's restriction on the number
- A large electronics company is organized into mainly profit-center divisions. The components division and the consumer electronics division are profit-center divisions of the company. The components d
- Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Superior Markets, Inc.
- Physical Phitness, Inc., operates three divisions, Weak, Average, and Strong. As it turns out, the Weak division has the lowest operating income, and the president wants to close it. "Survival of the
- Required: 1. From the adjusted trial balance for Brookstone Art Supplies, Inc. given below, prepare a multiple-step income statement in good form. Brookstone Art Supplies, Inc. Adjusted Trial Balanc
- Crede Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Each desk has a reading lamp as one of its components. Division A can purcha
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,580,000 based on a sales volume of 300,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,440,000 based on a sales volume of 240,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,920,000 based on a sales volume of 240,000 video disks. Detroit Disk has been selling the
- A. Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,200,000 based on a sales volume of 270,000 video disks. Detroit Disk has been selling t
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,840,000 based on a sales volume of 240,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,960,000 based on a sales volume of 280,000 video disks. Detroit Disk has been selling the
- Detroit Disk Inc. is a retailer for digital video disks. The projected net income for the current year is $2,710,000 based on a sales volume of 290,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,040,000 based on a sales volume of 210,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,360,000 based on a sales volume of 260,000 video disks. Detroit Disk has been selling the
- The two divisions in Crede Inc. allocate work ass follows: Division A makes and sells student desks, Division B manufactures and sells reading lamps. Division B manufactures and sells reading lamps. E
- Mega Electronix sells television sets and DVD players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below. TV Division DVD Division Total Sales $600,000 $400,000 $1,000
- Tiny Bits Digital (TBD) produces high end audio and television equipment. One of the company's most popular
- Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below. The North Store has consistently shown losses over the past two years. For thi
- Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 750 300 Desired inven
- Pletcher company produces and sells automobiles batteries, the heavy-duty HD - 240. The 2011 sales budget is as follows. Quarter: HD-240 1 5200 2 6650 3 7860 4 11210 The January 1, 2011 inventory of HD-240 is 2290 units. Management desires an ending inve
- AccuWeight Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: Small Scale ; Large Scale ; North Region U
- Sako Companys Audio Division produces a speaker that is used by manufacturers of various audio products Sales and cost data on the speaker follow Sako Company has a HiFi Division that could use this
- MAQ Corporation, a major producer of consumer electronics equipment, is currently faced with a rapidly growing product line and its associated inventory problems. MAQ's president, Mary Semerod, has de
- Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, prepare (a) a sales budget and (b) a production budget: Rumble Thunder Estimated inventory (units), June 1 296 82 Desired invent
- Determine whether the company should discontinue operating the Consumer Division. Green Forest Berhad operates two divisions, the Bedroom Division and the Consumer Division. The Bedroom Division manufactures and sells bedroom fixture and fittings. The Con
- When analyzing a product manufactured by one division (division X) and sold to another division (division Y) within the same company, who would benefit when division X has idle capacity? Who would ben
- Altertech Inc. manufactures a product that contains a circuit board. The company has always purchased this circuit board from a supplier for $32 each. Altertech recently upgraded its own manufacturing capabilities and now has enough excess capacity (inclu
- Sifton Electronics Corporation manufactures and assembles electronic motor drives for video cameras. The company assembles the motor drives for several accounts. The process consists of a lean cell for each customer. The following information relates only
- Kessler Enterprises manufactures computer monitors in its Video Division. These monitors can be sold internally to the EDD Division of Kessler or externally to independent customers. Sales and costs for the most popular monitor manufactured by the Video D
- Cyber Tech Inc. produces and distributes fiber optic cable for use by telecommunications companies. Cyber Tech Inc. issued $77,000,000 of 15-year, 6% bonds on March 1 at their face amount, with Intere
- At the beginning of the year, an audio engineer quit his job and gave up a salary of 175.00 per year to start his own business Sound Devices Inc. The company builds, installs and maintains custom audio equipment for a business that require high-quality au
- Whisper, Inc. produces two products, B-X4 and X-C12. B-X4 is a high-volume item totaling 20,000 units annually. X-C12 is a low-volume item totaling only 6,000 units per year. B-X4 requires one hour of
- Poo Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model ; Annual Sales in Units ; High F 10,000 ; Great P 16,000 ;National uses a volume-based costi
- The Gajet Store Inc. started its operations on January 1, 2015. It engages in buying and selling different types of electronic gadgets. The first step in its operating cycle would be to: a. collect cash from customers b. sell goods to customers c. purchas
- Incan Inc. manufactures a variety of parts for use in its product. The company has always produced all of the necessary parts for its product, including all of the electronic circuits. The company sells 19,000 units of its product per year. An outside sup
- VisBright manufactures and sells televisions. The company's upstream division, Chip Division, builds chips that are placed behind screens to control the image displayed. Chip Division sells chips to VisBright's downstream division, Screen Division, at a t
- Micro Products, Inc., has developed a very powerful electronic calculator. Each calculator requires four small 'chips' that $5 each and are purchased from an overseas supplier. Micro Products has prep
- ABC Company is a discount department store that has three major departments, groceries, general merchandise, and drugs. Management is considering dropping groceries, which have consistently shown a net loss. The space vacated by the dropping of groceries
- Audio Visual Corporation (AVC) manufactures and sells visual display equipment. Their Headquartera in Boston, it has seven sales offices with nearby warehouses that carry its inventory of new equipmen
- A batch-level driver is consumed by a product each and every time that: a. a batch of products is produced. b. a unit is produced. c. a purchase order is issued. d. a customer complains. e. None of these.
- Jane is the inventory manager for CAM Inc. Jim, the CFO, gives Jane written authority to buy for the firm as many computers and electronic equipment and devices as necessary. The next day, he calls Ja
- Jane is the inventory manager for CAM Inc. Jim, the CFO, gives Jane written authority to buy far the firm as many computers and electronic equipment and devices as necessary. The next day, he calls Ja
- Trane Inc. is a food processing and distribution company. The Company had entered the "healthy" packaged food market a few years earlier but, due to sluggish sales, they divested (sold) the division i
- Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.35 per unit. During May, the company purchased 14,620 units of the part for a t
- Audio Visual Corporation (AVC) manufactures and sells visual display equipment. Headquartered in Boston, it has seven sales offices with nearby warehouses that carry its inventory of new equipment and
- Using the data, perform the accounting required for the acquisition of Little, Inc. by Big, Inc. This is a 100%
- Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: Se
- New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $225,000, and the sales mix is 60% MP3 players and 40% satellite radios. The unit se
- New Wave Technology Inc. manufactures and sells two products. MP3 players and satellite radios. The fixed costs are $271.600. and the sales mix is 40% MP3 players and 60%, satellite radios. The unit s
- Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A: S
- Micro Products, Inc. has developed a very powerful electronic calculator. Each calculator requires two small 'chips' that cost $7 each and are purchased from an overseas supplier. Micro Products has p
- ABC Company is a discount department store that has three major departments, groceries, general merchandise and drugs. Management is considering dropping groceries, which have consistently shown a net loss. The space vacated by the dropping of groceries w
- Thrifty Markets, Inc operates three stores in a large metropolitan area. The company's segmented absorption costing income statement for the last quarter is given below: __Thrifty Markets, Inc. Incom
- Gascon Inc. manufactures electronic products, with two operating divisions, Consumer and Commercial divisional income statements, which involve no intracompany transfers and which include a breakdown
- Special Order: High-Low Cost Estimation SafeRide, Inc. produces air bag systems that it sells to North American automobile manufacturers. Although the company has a capacity of 300,000 units per year,
- Warner, Inc., produces Product Y. Each unit required 1 yard of material. The company produced 470 units during October. However, due to defects in the fabric, the company actually used 400 yards of ma
- Warner, Inc., produces Product Y. Each unit required 1 yard of material. The company produced 480 units during October. However, due to defects in the fabric, the company actually used 500 yards of ma
- 1. In packages of its products, Burnitz Inc. includes coupons that may be presented at retail stores to obtain discounts on other Burnitz products. Retailers are reimbursed for the face amount of coup
- Marigold Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capacity to meet customers' demand for its product. Marigold issues a(n) $
Explore our homework questions and answers library
Browse
by subject