Mike is the Director of Human Resources for a 120-employee family-owned manufacturing firm. Mike has been quite busy the last ye

Answer:

Assembly Work In Process Inventory

Explanation:

Costs for units finished will transition from one process to the subsequent one.

Costs transferred out will be taken from Molding (origin) and added to Assembly Work-in-Process (destination)

As this question is theoretical, specific numbers do not need to be considered.

Answer:

Order cycle duration = 28.85 days

Explanation:

The Economic Order Quantity (EOQ) refers to the optimal order size that minimizes the combination of ordering and holding costs. It is at the EOQ point where carrying costs equate to holding costs.

To calculate EOQ, we use the formula below

EOQ = √ (2× Co× D)/Ch

Where Co is the ordering cost, Ch is the holding cost per annual unit, and D represents annual demand.

Given: Co=125, Ch= 2.50, D= 40,000

EOQ= √ (2× 125× 40,000)/2.5

EOQ = 3,162.27

The cycle time is then determined using order quantity divided by annual demand multiplied by 365 days

= 28.85 days

Answer:

1. Suzuki calculates 12% of receivables: Net income (before taxes) for 2021 falls by $5,500  and total assets for 2021 reduce by $5,500

2. Suzuki calculates 3% of credit sales: Net income (before taxes) for 2021 falls by $7,800 and total assets for 2021 reduce by $7,800

Explanation:

1. Suzuki calculates 12% of receivables.

Estimated bad debts: 12% x $55,000 = $6,600

Prior to adjustments, the Allowance for Uncollectible Accounts has a balance of $1,100 (credit).

Bad debts expense = $6,600  - $1,100 = $5,500.

The journal entry will be:

Debit Bad debts expense $5,500

Credit Allowance for Uncollectible Accounts $5,500

Net income (before taxes) in 2021 falls by $5,500  and total assets in 2021 reduce by $5,500

2. Suzuki calculates 3% of credit sales.

Estimated bad debts: 3% x $260,000 = $7,800.

The company follows the percentage of sales methodology.

Bad debts expense = $7,800.

The journal entry will be:

Debit Bad debts expense $7,800

Credit Allowance for Uncollectible Accounts $7,800.

Net income (before taxes) in 2021 falls by $7,800 and total assets in 2021 reduce by $7,800

Answer:

B. The Nash equilibrium suggests both companies should opt for a low advertising strategy.

Explanation:

Examining the responses from both players reveals the following:

If PG decides on High, then JNJ will achieve the best outcome by choosing Low.

If PG selects Medium, JNJ's optimal choice would still be Low.

Should PG pick Low, JNJ again benefits most by choosing Low.

In the same way,

If JNJ opts for High, PG should choose Low for the highest payoff.

Finally, if JNJ selects Low, PG still maximizes their payoff with a Low choice.

Consequently, PG has a clear dominant strategy to choose Low, and likewise, JNJ also has a dominant strategy to select Low.