Inventory accounting, building

The main objective of PP/DS optimization is the building of campaigns taking into account inventories and setup costs. Additional objectives in this scenario are the minimization of delays with respect to the due dates given by the SNP optimization run as well as the selection of suitable resources. The PP/DS optimizer is based on a genetic algorithm. As setup carry-overs have been modeled already in the upper planning level, PP/DS receives input that will yield a consistent plan. 

Assets are commonly divided into the classifications of current, fixed, and miscellaneous. Current assets, in principle, represent capital which can readily be converted into cash. Examples would be accounts receivable, inventories, cash, and marketable securities. These are liquid assets. On the other hand, fixed assets, such as land, buildings, and equipment, cannot be converted into immediate cash. Deferred charges, other investments, notes and accounts due after 1 year, and similar items are ordinarily listed as miscellaneous assets under separate headings. 

On Aug. 1, a concern had 10,000 lb of raw material on hand which was purchased at a cost of 0,030 per pound. In order to build up the reserve, 8000 lb of additional raw material was purchased on Aug. 15 at a cost of 0,028 per pound, and 2 days later 6000 lb was purchased from another supplier at 0.031 per pound. If none of the raw material was used until after the last purchase determine the total cost of 12,000 lb of the raw material on an inventory or cost-of-sales account for the month of August by (a) the current-average method, (b) the fifo method, and (c) the "lifer method. 

As shown in Table 16.3, assets for this corporation are divided into Current Assets, Investments, Property, and Other Assets. Current assets are items of economic value that could be converted to cash in less than one year, including cash and cash equivalents, marketable securities, accounts receivable, inventories, prepaid expenses, and deferred income taxes. The current assets total 4,630,000,000. Investments pertain to investments in companies in which ownership interest by U.S. Chemicals is 50% or less, but where U.S. Chemicals exercises significant influence over operating and financial policies. Property constitutes fixed assets, including land, buildings, machineiyr, equipment, and software, and is listed at its bod... 

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