Distribution Center A Transit Time: 2 weeks Order Quantity: 500 units Week 2 3 4 5 Gross Requirements 300 200 150 275 300 In Transit 500 Projected Available 200 Planned Order Release Distribution Center B Transit Time: 2 weeks Order Quantity: 200 units Week 2 3 4 Gross Requirements 50 75 100 125 150 In Transit Projected Available 150 Planned Order Release Central Supply Lead Time: I week Order Quantity: 600 units Week 3 4 5 Gross Requirements Scheduled Receipts Projected Available 400 Planned Order Release
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
A company that manufactures snow shovels has one plant and two distribution
centers (DCs). Given the following information for the two DCs, calculate the
gross requirements, projected available, and planned order releases for the two DCs
and the gross requirements, projected available, and planned order releases for the
central warehouse.
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