Duke Company stocks a particular item for which the following information is available:Duke Company stocks a particular item for which the following information is available:Minimum usageMaximum usageNormal usageProcurement timeEconomic order quantity280 units per day840 units per day550 units per day16-20 days10,000 unitsCalculate the re-order level, minimum stock level and maximum stock level.MinimumStock LevelReorderLevel5,60016,80016,80012,600MaximumStock Level(II)(II)(IV)6.7206,9006,7204,20022,32022,32026,80010,560O a. IVO b lO .IIO d. II

The maximum level, minimum level and order point are determined to avoid over stocking and under…

Duke Company stocks a particular item for which the following information is available: Duke Company stocks a particular item for which the following information is available: Minimum usage Maximum usage Normal usage Procurement time Economic order quantity 280 units per day 840 units per đay 550 units per day 16-20 days 10,000 units Calculate the re-order level, minimum stock level and maximum stock level. Minimum Stock Level Reorder Level Maximum Stock Level (10 (II (I) (IV) 5,600 16,800 16,800 12,600 6,720 6,900 6,720 4,200 22,320 22,320 26,800 10,560 O a. IV O b.I O c.II O d. II

Duke Company stocks a particular item for which the following information is available: Duke Company stocks a particular item for which the following information is available: Minimum usage Maximum usage Normal usage Procurement time Economic order quantity 280 units per day 840 units per đay 550 units per day 16-20 days 10,000 units Calculate the re-order level, minimum stock level and maximum stock level. Minimum Stock Level Reorder Level Maximum Stock Level (10 (II (I) (IV) 5,600 16,800 16,800 12,600 6,720 6,900 6,720 4,200 22,320 22,320 26,800 10,560 O a. IV O b.I O c.II O d. II

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 1E: Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of...

See similar textbooks

Similar questions

Order Point Pershing, Inc. expects daily usage of 500 lb of material X, an anticipated lead time of seven days, and a desired safety stock of 2,500 lb. a. Determine the order point. b. Determine the number of pounds to be issued from safety stock if the new order is four days late.
10. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use 280 240 180 1.000 200 Maximum daily use Minimum daily use EOQ Cost of placing an order Working days per year P20 250 days Lead time 6 days What is the average inventory?
Given the following informations annual sales in units 30,000 cost of placing an order $60,00 per unit carrying costs $ 1.50 Existing units of safety stock 300 a what is the EOQ? b. what is the average inventory based on the EOQ and the existing safety stock c. what is the maximum level of inventory? d. how many orders are placed each year?
Given the following information: Annual sales in units 40,000 Cost of placing an order $58.00 Per-unit carrying costs $2.30 Existing units of safety stock 600 What is the EOQ? Round your answer to the nearest whole number. units What is the average inventory based on the EOQ and the existing safety stock? Use the rounded value of the EOQ from the previous question in your calculations. Round your answer to the nearest whole number. units What is the maximum level of inventory? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. units How many orders are placed each year? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. orders per year
The following information relates to Blueberry Company’s materials YWorking days per year 240Normal lead time in working days 20Maximum lead time in working days 45 Annual usage 7,200 Assuming that the units of material Y will be required evenly throughout the year, thesafety stock and order point would be Safety Stock Order Pointa 600 600b 600 1,350c 750 600d 750 1,350
What would be the minimum stock level from the following data? Reorder level 2,400 units Lead time 2–5 days Maximum usage 400 units per day Minimum usage 100 units per day A 100 units B 200 units C 700 units D 400 units
From the following information calculate the Maximum stock level, Minimum stock level, Re-ordering level and Danger stock level: Average consumption 330 units per day Maximum consumption 420 units per day Minimum consumption 240 units per day Re-order quantity 3,600 units Re-order period 10 to 15 days Emergency Re-order period 12 days
Total Stock Administration costa under EOQ model is the sum of: a.Ordering costs and Carrying costs b.Carrying costs and Reoder level costs c.Storage and carrying costs d. Minimum stock costs and reorder quantity 2. The following information pertains to inventory item Zl47 Reorder level 3150 units Reorder quantity 3250 units Minimum Lead time 11 days Maximum Lead time 15 days Minimum demand 90 units per day Maximum demand 260 units per day The minimum stock level is ______ 975 750 2,160 875 3. Annual demand- 2000 units Unit cost- $625 Carrying cost per unit per year – 2% of unit purchase price Odering Cost - $5 What is the highest quantity that should be ordered at any one time? a. 2000units b. 1600 units c. 40units d. 167 units 4. The EOQ for a particular model of laptop is 40units and the annual demand is 2000 units. If the ordering cost is $5, what is the unit carrying cost? a. $0.08 b. $12.50 c. $1,600 d. $20,000 5. Annual demand…
A products demand in each period follows a Normal distribution with mean of 60 and standard deviation of 10. The order up to level S is 204. Lead time is 2 periods. What is the expected on hand inventory ? Show all formulas used, calculations and results. Do on Black Bd b. What is the stoch out probability. Show all formulas used, calculations and results. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
Joel Brown & Associates Limited produces and sells two products, vita 120 and vita 220. The following table provides information on the sales forecast for 2018: Sales Forecast Product Qrt1 Qrt2 Qrt3 Qrt4 Total Vita 120 5,000 6,000 4,800 5,500 21,300 Vita220 6,500 4,600 5,400 6,200 22,700 Notes: It is the company policy to have stock on hand at the end of each quarter equalling to 10% of sales for the next quarter. Budgeted sales for the first quarter of 2019 were: 7,000 units for Vita 120 and 5, 800 units for Vita 220 During 2016, the company sold one unit of Vita 120 for $600 and one unit of Vita 220 for $700 Opening inventory for the first quarter of 2018 was 320 units of Vita 120 and 420 units for Vita 220 To make one unit of Vita 120 four (4) units of raw material B20 is required while five (5) units of raw material B12 is required to make one unit of Vita 220. Prepare the sales budget Prepare the…
A company stocks an item that is consumed at the rate of 35 units each day. Every time an order is placed for new supply, $ 105 must be paid. A unit inventory held in stock will cost $ 0.15 d) What is the total cost if the order quantity is 205 more than EOQ? e) What is the optimum number of orders (rounded to the closest integer) that the company has to place each year? Assume that the company has a standing policy of not allowing shortages in demand.
A company uses the Economic Order Quantity (EOQ) model to establish reorder quantities. The following information relates to the forthcoming period: Order costs = $25 per order Holding costs = 10% of purchase price = $4/unit Annual demand = 20,000 units Purchase price = $40 per unit EOQ = 500 units No safety inventory are held. What are the total annual costs of inventory (ie the total purchase cost plus total order cost plus total holding costs)? A $22,000 B $33,500 C $802,000 D $803,000