Richardson Paper manufacturers produces a high quality and large size paper. The cost of prepare a production run for this paper is $10 per run. The inventory carrying cost for this paper is $1.00 per square yard per year. The annual demand for this paper is 6,000 square yards. The manufacturing facility produces this paper 300 days per year and the plant can produce the paper at a rate of 60 square yards per day. Required:
a. What is the optimum quantity of paper to produce?
b. What is the maximum inventory achieved during a production run?
c. How many production runs are needed to meet the annual demand?
d. What is the length of a production run?
e. What is the total annual cost of producing and storing the paper?

The owners of spokes bicycle shop worry that cash flow this winter may be insufficient to meet the current operating expenses. while they anticipate a surplus of cash inflow as warm weather approaches, they need funds now to meet the company's immediate obligations. the owners can best resolve cash flow concerns by obtaining financing.

Accublade castings inc. casts blades for turbine engines. within the casting department, alloy is first melted in a crucible, then poured into molds to produce the castings. on may 1, there were 230 pounds of alloy in process, which were 60% complete as to conversion. the work in process balance for these 230 pounds was $32,844, determined as follows: exercises during may, the casting department was charged $350,000 for 2,500 pounds of alloy and $19,840 for direct labor. factory overhead is applied to the department at a rate of 150% of direct labor. the department transferred out 2,530 pounds of finished castings to the machining department. the may 31 inventory in process was 44% complete as to conversion. prepare the following may journal entries for the casting department: the materials charged to production the conversion costs charged to production the completed production transferred to the machining department determine the work in process"casting department may 31 balance.

Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?