Total annual demand is 48.000 units (4,000 per month x 12). Hence, total annual ordering costs equal US $2,880 [US $150 cost per order x (48,000 units + 2,500 EOQ)].

Reversing entries are made at the beginning of a period to reverse the effects of adjusting entries made at the end of the preceding period. They are optional entries made for the sake of convenience in recording the transactions of the period. In order for reversing entries to reverse the prior adjustments, they must be the exact opposite of the adjustments made in the previous period.

The balance in the ordinary shares account represents share capital i.e. capital contributed by owners, not earnings retained in the business. It is not affected by a change in tax ate. I ./id. ends will increase. not however, because they are a constant percentage of after-tax earnings. An entity reports the following account balances at year-end:

The opening balance of ordinary shares was US $100,000. The opening balance of ordinary earning was US $82,500. The entity had 10,000 ordinary shares outstanding all year. No dividends were paid during the year.

Project management concerns managing teams assigned to special projects. Lumpy demand refers to periodic demand for a product or service that increases in large, lumpy increments.