A lot of 2,000 items has just arrived. A single sampling calls for a sample size of 100 and c = 3
What is the average outgoing quality limit, assuming that all defectives in the entire lot are replaced if it is rejected and all defectives are replaced in the sample if it is accepted? Table G.1 is appended to this exam.
A) less than or equal to 0.0150
B) greater than 0.0150 but less than or equal to 0.0175
C) greater than 0.0175 but less than or equal to 0.0200
D) greater than 0.0200
C
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Explain why in any given season, the one-period decision model may result in a poor choice for a stocking level?
What will be an ideal response?
Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the purchase on August 7 is:
A. Debit Merchandise Inventory $9,750; credit Accounts Payable $9,750. B. Debit Merchandise Inventory $9,750; credit Cash $9,750. C. Debit Merchandise Inventory $9,750; credit Sales Returns $1,500; credit Cash $8,250. D. Debit Accounts Payable $8,250; debit Purchase Returns $1,500; credit Merchandise Inventory $9,750. E. Debit Accounts Payable $9,750; credit Merchandise Inventory $9,750.
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