How do I calculate the economic order quantity (EOQ) per annum? New West Secondary School purchases 700 math sets per annum. The cost of each math set is $80. Each set is sold for $100. The cost of placing a single order is $45. The holding cost is 11% of the unit purchase price.
Q: Which of the following statement(s) related to budgets is/are TRUE? O In preparing a master budget,…
A: A budget is prepared with a view to estimate the revenues and expenses of the firm over a particular…
Q: Orange Corporation has budgeted sales of 26,000 units, targeted ending finished goods inventory of…
A: Number of units to be produced next year = Budgeted sales + Budgeted ending inventory of finished…
Q: On March 1, your checkbook balance is $565.02, and the bank statement balance is $464.07. An…
A: Bank Reconcilation: It is the method involved with matching the balance in bank balance as per…
Q: It is a well-established principle that the contents of the bylaws that contravene the Constitution…
A: In case any contradiction between the provisions of bylaws that conventene rhe constitution is viod.…
Q: Management of Lasalyano Corporation has asked for your help as an intern in preparing some key…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: QUESTION 1 Ava Consulting issued 1180 shares of previously unissued common stock with a par value of…
A: Solution: Additional paid in capital is the capital which is the excess of issue price from par…
Q: On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share…
A: A cash flow statement is a statement that reports the net cash inflows or outflows into or from a…
Q: Both Lauren Jason Who is worse off in this situation? give the money in the first stage. surplus,…
A: whenever 2 person who work together do not trust or corporate with each other then the trust issue…
Q: Times interest earned Averill Products Inc. reported the following on the company’s income…
A: Formula: Times Interest Ratio = Income before Interest and tax/ Interest Expense Times Interest…
Q: How is the accounting treatment of an event that occurred on the date before the report was…
A: Subsequent events are events occurring after balance sheet but before the issue of financial…
Q: A plant asset was purchased for P19,000 on January 1, 2011 with a residual value and useful life of…
A: Depreciation is the deliberate, progressive drop in an asset's reported value throughout its useful…
Q: The NiceWay Corporation's statement of financial position shows the total stockholders' equity of…
A: The book value per share is calculated as total shareholders equity divided by number of shares…
Q: Computer Accounting with Quicl X G Google + x A…
A: An adjustment entry is recorded at the end year for any unrecognized income or loss during the…
Q: parasota purchased a new piece of equipment to be used in its new facility. The $416,000 piece of…
A: The question is based on the concept of Financial Accounting. Interest bearing securities come under…
Q: Miracle Corporation reports the following amounts in its December 31, 20XF income statement:…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: A business issued a 120-day, 15% note for $83,000 to a creditor on account. Journalize the entries…
A: Increase in assets should be debited and decrease in assets should be credited. Increase in…
Q: what are the disadvantages of bill of exchange?
A: A bill of Exchange is a certificate of agreement between two parties where one party agrees to pay…
Q: On June 1, 2018, Coronado Company and Whispering Company merged to form Metlock Inc. A totalof…
A: Earning per share tells how much each share of company's stock makes money. The tax rate given is…
Q: any (LLC)? A. Complex
A: To explain the feature of LLC as,
Q: Chapter 10: Stockholders' Equity and Appendix D Use the Stockholders' Equity section of FSB's…
A: Answer 1) Calculation of number of shares of Preferred Stock Issued Number of shares of Preferred…
Q: Splish Brothers Ltd. is a publicly listed company following IFRS. Assume that on December 31. 2020.…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Cito's Corp. has current assets of $4.5 million and current liabilities of $3.6 million. The current…
A: Financial ratios are those which provide a summary of the accounts of a company and helps an…
Q: 3. Enter the following in the personal accounts (i.e. the creditor and debtor accounts) only. Do not…
A: Debtors are those persons or parties which have received goods means bought goods from the company…
Q: P 850,000 50,000 P S00,000 Sales Less: Sales returns Net Sales Accounts Receivable Less: Allow. for…
A: In the context of the given question, we need to journalize the ending inventory transaction in the…
Q: 1. Invested $200,000 to start JHJ rental car company 2. Paid cash of $10,000 for supplies 3. Paid…
A: The statement of cash flow (CFS) is prepared by the management to reflect the flow of cash and cash…
Q: A real property was transferred to a revocable trust with Carding as the beneficiary. The property…
A: Gross Rentals: 900,000 Expenses attributable to the maintenance of the property: 200,000 Total…
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: The static budget variance of variable Cost = Actual variable Cost - Budgeted variable Cost
Q: As sales manager, lohn was grven the following static budget report in the cothing dopartment of…
A: The flexible budget is prepared on the basis of actual results and standard rates. The variance is…
Q: Assume that a company makes 30,000 units of Part A each year. At this level of production, the…
A: Formula: Financial advantage (disadvantage) of buying the parts from the outside supplier =…
Q: The EASY Corporation has the following information relating to its share capital: • 10% Preference…
A: Earning per share tells for each share of company's stock how much money company makes. The…
Q: Melrose Inc. uses standard costing. Last period, it spent $145,000 for labor. The direct labor rate…
A: The cost of goods sold is the total of all costs incurred in the production of a sold product or…
Q: A certain car was purchased for $22,500. The car has a resale value of $14,500 after a useful life…
A: Annual depreciation = ($22,500 - $14,500) / 6 years = $1,333
Q: 23. Which of the following costs is relevant to a make-or-buy decision of a particular part of a…
A: Make cost is the cost in producing the product. Buy cost is the cost of purchasing or buying the…
Q: In April Leafon Landscapes' direct labor was 60% of the conversion cost. If the manufacturing…
A: Conversion cost = Direct labor + Manufacturing overhead
Q: On January 1, 20x1 Plaka Co. acquired goods for sale in the ordinary course of business for…
A: Given information, Purchase price = P250,000 Refundable purchase taxes included in above = 5000…
Q: No-More-Caviar Corporation issued ten-year term bonds on January 1, 2020, with a face value of…
A: The question is based on the concept of Financial Accounting. Bonds come under the ambit of…
Q: Which is a incorrect statement below? A Change in revaluation surplus is an Oci that will be…
A: The income statement shows the net income or net loss that is calculated by deducting the expenses…
Q: Journalize the following transactions ( the company is using a perpetual system). 1. On June 1,…
A: Total purchase value = purchased units × price per unit
Q: The flow of goods and services to consumers is illustrated by
A: Relationship of Goods and Service price with Consumer Supply Chain of goods and Service from…
Q: Newman Co. purchased CNC router cutting and engraving machinery at a cost of $320,000 in January…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: DUse the following to answer questions 18 - 22 Attention Men's Wear, Inc. Balance Sheet…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in…
A: Cost accounting is the one that is widely used by cost accountants to determine the cost of the…
Q: On January 1, 2021, Heaven Inc. reported the following shareholders' equity: Preference share…
A: Total stockholders equity is the source of company's assets. Total Stockholders equity = Total…
Q: On January tof the current year, the furniture account had a balance of P 24.000 with accumulated…
A: Net book value of the assets = Total cost of the assets - Accumulated depreciation where,…
Q: First Class, Inc., expects to sell 22,000 pool cues for $12.00 each. Direct materials costs are…
A: Number of units to be produced in 2019 = Expected sales + Ending inventory of finished goods -…
Q: give the journal entry received a promissory note in payment of an account.
A: The journal entry keeps the records of day to day transactions of the business as debit one account…
Q: Monetary assets include cash, accounts receivable and inventory. O accounts receivable and property,…
A: A monetary assets are those assets which can easily converted into Fixed or determinable units…
Q: Required: a. Compute the total factor productivity measures for year 1 and year 2 based on the three…
A: In accounting we consider different costs of inputs including the overheads to determine the total…
Q: 2. If an after-tax rate of return of 10% is required, and the effective tax rate is 30%, what is the…
A: After tax rate of return = Before tax rate of Return X (100% - tax rate)
Q: that if a truck is driven 105,000 kild erating cost is 11.4 cents per kilome ers during a year, the…
A: 1) Total Kms Operating Cost per Km Total cost 1,05,000 11.4 11,97,000…
How do I calculate the economic order quantity (EOQ) per annum?
New West Secondary School purchases 700 math sets per annum. The cost of each math set is $80. Each set is sold for $100. The cost of placing a single order is $45. The holding cost is 11% of the unit purchase price.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and sell 49,300 units at a price of 12.50 each. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Total selling expense is projected at 26,000, and total administrative expense is projected at 134,000. Required: 1. Prepare an income statement in good form. Be sure to include the percent of sales column. 2. What if the cost of goods sold percentage for the past few years was 65 percent? Explain how management might react.A publisher has a fixed cost of $175,000 associated with the production of a college mathematics book. The contribution to profit and fixed cost from the sale of each book is $5.75. i) Determine the number of books which must be sold in order to break even. ii) What is the expected profit if 65,000 books are sold?Bellevie college cost $7612.00 a year, the graduation rate is 25%, salary after attending is $42,400. Edmonds college cost $7,207.00 a year, the graduation rate is 27%, salary after attending is $34,300. What is the explanatory? What is the response
- The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components inminicomputers. The unit cost of each transistor is $10, and the cost of carrying one transistor in inventoryfor a year is $3. Ordering cost is $30 per order and finds that deliveries from his supplier generally take 5working days. What are?(a) the optimal order quantity.(b) the expected number of orders placed each year.(c) the expected time between orders? Assume that Fisher operates on a 200-day working year.(d) the reorder point for the transistors.A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how much is delivered) and $1.20 per gallon. The annual holding cost is 35% of the price per gallon. Usage is 250 gallons/week. a) If the order quantity is 1000 gallons, what is the average inventory? b) If the order quantity is 1500 gallons, how many orders are placed each year? c) What is the EOQ quantity? d) If the order quantity is 2500 gallons, what is the sum of the ordering and holding costs PER GALLON? e) If orders are for the EOQ amount, what is the annual cost of the inventory system as a percentage of the annual purchase cost? f)If orders must be in integer multiples of 1000 gallons, how much should be ordered to minimize ordering and holding costs PER GALLON? g) A 3% purchase price discount is given if orders are for 8000 gallons or more. What would total annual costs (purchasing, ordering, and holding) be using this discount?(i) Electronics Ltd manufactures air conditioners. It purchases 200,000 units of a particular type of compressor part, CU30, each year at a cost of $64 per unit. Annual carrying cost (for insurance, material handling, breakage etc) per unit is 5% of the unit purchase price. Currently Electronics Ltd places 50 orders for 4,000 units each year and ordering costs per purchase order are $18. d) Calculate the EOQ.e) What is the minimum ordering cost?f) What is the minimum storage cost?
- State University must purchase 1200 computers from three vendors. Vendor 1 charges $250 per computer plus a total delivery charge of $5000. Vendor 2 charges $300 per computer plus a total delivery charge of $4000. Vendor 3 charges $350 per computer plus a total delivery charge of $6000. Vendor 1 will sell the university at most 800 computers, vendor 2, at most 600, and vendor 3, at most 400. The minimum order from any vendor is 300 computers. Determine how to minimize the cost of purchasing the needed computers.Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing.Calculate Sk8’s annual relevant ordering costs for the EOQ .Lia ITZY has determined that the annual demand for number 6 screws is 100,000 screws. Lia, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, and so on. Furthermore, she estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. Assume that the demand is constant throughout the year. QUESTION: What would the average inventory be? What would the annual holding cost be?
- The I-75 Carpet Discount Store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. The carpet manufacturer normally charges the store $8 per yard for the carpet; however, the manufacturer has offered a discount price of $6.50 per yard if the store will order 5,000 yards. How much should the store order, and what will be the total annual inventory cost for that order quantity?Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing Calculate Sk8’s annual relevant carrying costs for the EOQDona Corporation manufactures and sells T-shirts imprinted with college name and slogans. Last year, the shirts sold for P7.50 each, and the variable cost to manufacture them was P2.25 per unit. The company needed to sell 20,000 shirts to breakeven. The net income last year was P5,040. Dona’s expectation for the coming year include the following: • The sales price of the t-shirt will be P9.00 • Variable cost to manufacture will increase by one-third. • Fixed cost will increase by 10% • The income tax rate of 40% will be unchanged a. The selling price that would maintain the same contribution margin rate as last year is ______________- b. The number of T-shirts Dona must sell to break even in the coming year is ______________ c. If Dona wishes to earn P22,500 in net income for the coming year, the company’s sales in pesos must be __________