A service garage uses 204 boxes of cleaning cloths a year. The boxes cost $12 each. The cost to place one order is $15, and the cost to hold one box in inventory for a year is $2.40. Using this information, what is our total holding and ordering cost if we currently order 12 boxes at a time?
Q: Martin company uses 625 units of a part each year. The cost of placing one order is $8; the cost of…
A: Economic order Quantity (EOQ) = [(2*Annual Demand * Set up cost)/Carrying cost]
Q: Candy Delight Company manufactures candy. The company buys the sugar used in 15-pound boxes that…
A: Reorder Point is that level of minimum inventory which a manufacturing entity shall retain before it…
Q: Ottis, Inc., uses 632,025 plastic housing units each year in its production of paper shredders. The…
A: Economic order quantity indicates the units that should be ordered that provide the lowest cost to…
Q: Tool Mart sells 1,400 electronic water pumps every year. These pumps cost $54.30 each. If annual…
A: EOQ = √(2*annual demand*cost per order/holding cost)
Q: Annually a company requires 45,000 units of one of its components that it distributes throughout the…
A: *As per bartleby guideline in case of interlinked question answer first 3 only
Q: A camera manufacturer spends $8,000 for facilities per month and it costs $75 to produce each…
A: Here monthly cost of facilities incurred per month $8000 is fixed in nature
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Material Costing - It refers to the systematic control of storing, purchasing, and consumption of…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION-1 THE ANNUAL INVENTORY RELATED COST IS THE SUM OF THE ANNUAL HOLDING AND ORDERING COST.…
Q: A supermarket uses a supplier for its bottled water. The annual demand for this product is 24000…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: 22. Step 1: Calculate the order quantity The order quantity is equal to the # Days Inventory x Daily…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Reorder point is the point where the inventories are manufactured and restored again. It shows the…
Q: A company has been making wakeboards for many years. The monthly overhead is $19,000 and each…
A: In this question, we have been asked to calculate the break-even point for which we have been given…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A:
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: ITEM 1 Reorder Point = 4,200 units ITEM 2 Lead Time Demand = 2,500 units ITEM 3 Safety Stock = 1,700…
Q: A supermarket uses a supplier for its bottled water. The annual demand for this product is 24000…
A: Inventory cycle time is determined by dividing the number of working days by the number of orders.…
Q: he General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of…
A: Economic order quantity is that level of reorder quantity which minimizes the total cost of carrying…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Given information: Working days = 250 The average number of boxes sold per day = 500 Occasionally…
Q: The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual…
A: Given information is: The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super…
Q: der. Stora
A: Given: To calculate the inventory of the company as,
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: “Since you have posted a question with many sub-parts, we will solve first three sub-parts for you.…
Q: A photocopier center uses an average of 480 boxes of copier paper a year. The cost of a box is RO 16…
A: The optimal order quantity for a business to purchase in order to reduce inventory costs is known as…
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The reorder point refers to the level of inventory at which the stock is purchased to be sold in the…
Q: Below is the amount of labor employed by a starting business which makes bags out of recycled…
A: Total cost alludes to the total amount of money spent by a company to create products and services.…
Q: A large bakery buys sugar in 50-kg bags. The bakery uses an average of 1,344 bags a year. Preparing…
A: a) Economic order quantity =
Q: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The…
A: Formula: Annual Ordering cost units = Plastic housing units each year / Current year plastic housing…
Q: The soft goods department of a large department store sells 175 units per month of a certain large…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ helps in determining the level of quantity at which an entity can balance its ordering &…
Q: 8 per order. Orders are placed on an “as required” basis and the coffee bar occasionally runs…
A: Economic order quantity is the most cost efficient quantity that should be ordered.
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION-1 # CALCULATION OF FORECASTED HOLDING COST/CARRYING COST- A-CALCULATION OF ORDER…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The EOQ is a company's optimum order quantity that reduces overall costs associated with purchasing,…
Q: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of…
A: Costs of committed resources are the costs that remain fixed for a given level of activity. Since…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ- It is an sophisticated or ideal quantity that a company should acquire to minimize its cost of…
Q: The Handy Doll Manufacturing Company has the following information:The average doll sales price is…
A: 1)Variable cost = A cost that varies with the level of output. Here :- Raw material per doll = $4…
Q: Good-Brains Company sells kitchen supplies and housewares. Lava stone is used in production of…
A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: A local distributor for a national tire company expects to sell approximately 9,600 steel-belted…
A: Economic order quantity refers to the optimal amount of inventory a company should purchase in order…
Q: A local nursery, Greens, uses 1560 bags of plant food annually. Greens works 52 weeks per year. It…
A: Economic order quantity one of a method of managing inventory. This model is prepared to minimize…
Q: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of…
A: 1. Flexible cost is the cost which keeps varying based on the usage of resources. Committed cost is…
Q: Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she…
A: Given values in the question: Cost of calculator (C) = $35 Daily demand (d) = 5 Ordering cost (Co)…
Q: A local electronic repair shop uses 15,000 units of mobile batteries each year. It costs RO 30 to…
A: As per the honor code, We’ll answer the first question since the exact one wasn’t specified. Please…
Q: Bulldogs Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory…
A: Carrying cost includes cost of store staff Interest of the locked up capital Cost of obsolescence…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION- FORMULAS- 1-REORDER POINT=MAXIMUM DAILY DEMAND…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A:
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: A local electronic repair shop uses 15,000 units of mobile batteries each year. It costs RO 30 to…
A: Economic order Quantity =2×A×OC A = Annual cost O = Ordering cost C = Carrying cost
A service garage uses 204 boxes of cleaning cloths a year. The boxes cost $12 each. The cost to place one order is $15, and the cost to hold one box in inventory for a year is $2.40. Using this information, what is our total holding and ordering cost if we currently order 12 boxes at a time?
Step by step
Solved in 3 steps
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Required: 1. Prepare a statement of cost of goods sold in good form. 2. What if the beginning inventory of finished goods decreased by 5,000? What would be the effect on the cost of goods sold?
- Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of 52 per case (a case contains 24 cans of nuts). Kaune sold 150,000 cases last year to the following three classes of customer: The supermarkets require special labeling on each can costing 0.04 per can. They order through electronic data interchange (EDI), which costs Kaune about 61,000 annually in operating expenses and depreciation. Kaune delivers the nuts to the stores and stocks them on the shelves. This distribution costs 45,000 per year. The small grocers order in smaller lots that require special picking and packing in the factory; the special handling adds 25 to the cost of each case sold. Sales commissions to the independent jobbers who sell Kaune products to the grocers average 8 percent of sales. Bad debts expense amounts to 9 percent of sales. Convenience stores also require special handling that costs 30 per case. In addition, Kaune is required to co-pay advertising costs with the convenience stores at a cost of 15,000 per year. Frequent stops are made to each convenience store by Kaune delivery trucks at a cost of 30,000 per year. Required: 1. Calculate the total cost per case for each of the three customer classes. (Round unit costs to four significant digits.) 2. Using the costs from Requirement 1, calculate the profit per case per customer class. Does the cost analysis support the charging of different prices? Why or why not? 3. What if Kaune charged the average price per case to all customer classes? How would that affect the profit percentages?Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?This year, Hassell Company will ship 4,000,000 pounds of chocolates to customers with total order-filling costs of 900,000. There are two types of customers: those who order 50,000 pound lots (small customers) and those who order 250,000 pound lots (large customers). Each customer category is responsible for buying 1,500,000 pounds. The selling price per pound is 2 per lb for the 50,000 pound lot and 3 per lb for the larger lots, due to differences in the type of chocolate. ABC would likely assign order-filling costs to the customer type as follows: a. 450,000, small; 450,000, large (using pounds as the driver) b. 360,000, small; 540,000, large (using revenue as the driver) c. 750,000, small; 150,000, large (using number of orders as the driver) d. 450,000, small; 450,000, large (using customer type as the driver)
- Melchar Company uses 78,125 pounds of oats each year. The cost of placing an order is 18, and the carrying cost for one pound of oats is 0.45. Required: 1. Compute the economic order quantity for oats. 2. Compute the carrying and ordering costs for the EOQ.Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?Ingles Corporation is a manufacturer of tables sold to schools, restaurants, hotels, and other institutions. The table tops are manufactured by Ingles, but the table legs are purchased from an outside supplier. The Assembly Department takes a manufactured table top and attaches the four purchased table legs. It takes 16 minutes of labor to assemble a table. The company follows a policy of producing enough tables to ensure that 40 percent of next months sales are in the finished goods inventory. Ingles also purchases sufficient materials to ensure that materials inventory is 60 percent of the following months scheduled production. Ingless sales budget in units for the next quarter is as follows: Ingless ending inventories in units for July 31 are as follows: Required: 1. Calculate the number of tables to be produced during August. 2. Disregarding your response to Requirement 1, assume the required production units for August and September are 2,100 and 1,900, respectively, and the July 31 materials inventory is 4,000 units. Compute the number of table legs to be purchased in August. 3. Assume that Ingles Corporation will produce 2,340 units in September. How many employees will be required for the Assembly Department in September? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40-hour week and a 4-week month.) (CMA adapted)
- Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day. Required: 1. Prepare a statement of services produced in good form. 2. What if HHH planned to purchase 30,000 of direct materials? Assume there would be no change in beginning and ending inventories of materials. Explain which line items on the statement of services produced would be affected and how (increase or decrease).Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Next year, HHH expects to purchase 25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of 45 each next year. Total selling expense is projected at 22,000, and total administrative expense is projected at 53,000. Required: 1. Prepare an income statement in good form. 2. What if Jean and Tom increased the price to 50 per cleaning and no other information was affected? Explain which line items in the income statement would be affected and how.
