Use the Information Below to Answer the Following Question(s)

question 110

Multiple Choice

Use the information below to answer the following question(s) .Apex Disk Company operates a computer disk manufacturing plant.Direct materials are added at the end of the process.The following data were presented for August:

-Calculate the equivalent units for conversion costs at Apex Disk Company using the weighted-average method.

• A)300,000 units
• B)350,000 units
• C)382,500 units
• D)450,920 units
• E)499,000 units

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Definitions:

Re-Order Point

The inventory level at which an order should be placed to replenish stock before it runs out, based on lead time and consumption rate.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices at a given time.

Optimal Order Size

The quantity that minimizes the total cost of inventory, including holding and ordering costs.

Annual Inventory Cost

The total cost associated with storing and maintaining a company's inventory over one year, including warehousing and insurance.