(a) One Cycle Limited (OCL) is a manufacturer of sports bicycles. The company uses Pirelli-P44X tyres in its sports bicycles. The following information is provided in relation to Pirelli-P44X tyres for the year 2021. V The annual demand for Pirelli-P44X tyres is 400,000 tyres. V The ordering cost per order is Kshs 10,500. V The Holding cost per unit of Pirelli-P44X tyre is Shs 158. Required; i) Calculate the Economic order Quantity (EOQ) for the Pirelli-P44X tyres using the information provided above

(a) One Cycle Limited (OCL) is a manufacturer of sports bicycles. The company uses Pirelli-P44X tyres in its sports bicycles. The following information is provided in relation to Pirelli-P44X tyres for the year 2021. V The annual demand for Pirelli-P44X tyres is 400,000 tyres. V The ordering cost per order is Kshs 10,500. V The Holding cost per unit of Pirelli-P44X tyre is Shs 158. Required; i) Calculate the Economic order Quantity (EOQ) for the Pirelli-P44X tyres using the information provided above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Kind Gestures Company is a leading producer of Akohia Soap in the Eastern Region of Ghana. The following information relate to a component part used in manufacturing Akohia Soap for the period ended 31st August, 2020. Stock on hand at January 1, 2020 Purchases made during the period; January March May July Issues made during the period; February April June August Units Total Cost (GH¢) 2,000 100,000 4,000 200,000 3,000 180,000 8,000 640,000 2,000 200,000 5,000 1,000 1,800 2,500 a. Usingthefirst-in-first-outmethod,preparetheStoreLedgerAccountfortheperiod ended 31st August, 2020. b. 4 (four) importance of Cost Accounting to your programme of study.
ABC Co. is selling its products to customers A, B and C. The following information is given for the year 2018-19. Customer A Customer B Customer C Sales in Lakhs (?) 15.90 20.0 15.0 Number of deliveries (including rush deliveries) 100 40 50 Number of orders 120 50 60 1.2 Average number of hours per delivery (for verification of goods | before loading for delivery) 1 1.30 Number of rush deliveries 2 1 2 Sales commission (% to sales) 4 5 Normal delivery cost is ? 1,250 per delivery. Order processing cost is ? 1,84,000. Verification cost of goods before loading is ? 5,32,500. Rush delivery cost is 180% of normal delivery cost. Variable cost is 75 percent of sales. (i) Present a customer wise profitability statement.
1. The following information was extracted from an importer's commercial invoice. Make and Model Land Rover Discovery III TDV6 HSE Year of manufacture 2013 Year of first Registration July 2014 Date Entered May 2021 2,700cc. Engine Size Additional information: Current Retail Selling Price (CRSP) of a similar model but of 3700 CC is Kes 9,292,300 25% Import Duty Rate Excise Rate 35% 16% VAT Rate 3.5% Railway Development Levy (RDL) 2%. Import Declaration Fee (IDF) Depreciation rate for Direct Imports is as follows: 0-6 months 5% Over 6 months 10% 1-2 years 15% 2-3 years 20% 3-4 years 30% 4-5 years 40% 5-6 years 50% 6-7 years 60% 7-8 years 70%. What is the Customs Value of the Land Rover Discovery III TDV6 HSE?
Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladega presently produces and sells 400,000 tires for the North American market at a price of $200 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 100,000 tires for $150 per tire. Talladega's accounting system indicates that the total cost per tire is as follows: Line Item Description Amount Direct materials $75 Direct labor 20 Factory overhead (70% variable) 30 Selling and administrative expenses (60% variable) 18 Total $143 Talladega pays a selling commission equal to 3% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $3 per tire. In addition, Autobahn has made the…
Crankshaft Company manufactures equipment. Crankshaft products range....unit selling prices range from $200,000 to $1,500,000....Crankshaft has the arrangement with Winkerbean....Winkerbean purchases equipment from Crankshaft for a price of $1,000,000. Crankshaft determines installation to be $50,000. Cost of equipment is $600,000. Crankshaft delivers equipment of June 1, 2020 and completes installation on Sept. 30, 2020. Equipment has useful life of 10 years. How should the transaction of $1,000,000 be allocated among the service obligation? Prepare journal entries for this revenue arrangement on June 1 and Sept. 30,
6. Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladega presently produces and sells 400,000 tires for the North American market at a price of $200 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 100,000 tires for $150 per tire. Talladega's accounting system indicates that the total cost per tire is as follows: Cost Driver Dollar Amount per Tire Direct materials $75 Direct labor 20 Factory overhead (70% variable) 30 Selling and admin expenses (60% variable) 18 Total 143 Talladega pays a selling commission equal to 3% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $3 per tire. In addition, Autobahn has made the order conditional on…
A company is planning to manufacture rocking chairs. The fixed cost is $40,000 and the cost pre rocking chair is $80. Each rocking chair will be sold for $180. In the space below, type in the formula for the revenue function, R(x), from the sale of x rocking chairs.
Xu Ltd currently produces and sells two types of pillows that are currently gaining market share. The two types of pillows are Latex and Feather. Below are the costs and sales details of the two types of pillows for 2019: Latex FeatherAnnual sales (in pairs) 12,000 8,000 Selling price £30 £30Variable costs per pair:Materials £12 £12 Labour-machining(£8/hr) £2 £2 -assembly(£7) £2.50 £2.50 -packing (£6/hr) £0.30 £0.30Variable overhead £0.20 £0.20 Annual total fixed costs are currently…
Spartan Corporation, a U.S. company, manufactures green eyeshades for sale in the United States and Europe. All manufacturing activities take place in Michigan. During the current year, Spartan sold 8,400 green eyeshades to European customers at a price of $ 10.40 each. Each eyeshade costs $4.20 to produce. For each independent scenario, determine the source of the gross income from sale of the green eyeshades. b. Half of Spartan's production assets are located outside the United States.
Numbers Company manufactures 3 consumer products, namely One, Two, and Three. Sales and other information related to the said products are as follows: 2019 = Product One: Units sold - 15,000Unit Price - P10, Unit Cost - ; Product Two: Units sold - 20,000, Unit Price - Unit Cost - P7; Product Three: Units Sold - 5, 000 , Unit Price - P6, Unit Cost - 4.50 2020 = Product One: Units Sold - 20,000Total Price - P240,000, Total Cost - P180,000 ; Product Two: Units Sold - 20,000 Total Price - P180,000 Total Cost - P150,000 ; Product Three: Units Sold - 4,000 , Total Price - P20,000 Total Cost - P16,000 . Compute for the following: The Sales Price factor shows a variance of? The Cost Price Factor shows a variance of? The Sales-mix Factor shows a variance of?
A supplier sells MF Tires to dealers. The annual demand is approximately1,000 tires. The supplier pays P50 for each tire and estimates that the annualholding cost is 20 percent of the total value of tires. It costs approximatelyP25 to place an order. The supplier currently orders 80 tires per month.Required:a. Calculate ordering, holding, and total inventory costs for thecurrent ordered quantity.b. Determine the EOQ.c. How many orders will be placed per year using the EOQ?d. Calculate ordering, holding, and total inventory costs for the EOQand also determine the change in total inventory cost.
Xu Ltd currently produces and sells two types of pillows that are currently gaining market share. The two types of pillows are Latex and Feather. Below are the costs and sales details of the two types of pillows for 2019:LatexFeatherAnnual sales (in pairs)12,0008,000Selling price£30£30Variable costs per pair:Materials£12£12Labour-machining (£8/hr)£2£2-assembly (£7/hr)£2.50£2.50-packing (£6/hr)£0.30£0.30Variable overheads£0.20£0.20Annual total fixed costs are currently £150,000.For 2020 financial year, Xu Ltd intends to keep Latex pillows as it is but plans to improve Feather by using high quality materials. As a result, the company has negotiated with another supplier and the new material cost for Feather pillows is expected to be £17 a pair, with the new selling price of £45 per pair.Also, Feather pillow's Labour cost for machining will increase to £4.Also in 2020, the company intends to launch a new pillow, the Memory foam, a top of the range pillow with a selling price of…