Minmax Processing Company has an average requirement of 5 boxes of its product per week. It has been estimated that the ordering cost of Php2.00 and that the carrying cost per unit of inventory is Php0.20. It observes a lead time of two weeks. Determine the total annual inventory cost.
Q: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed…
A: Net Income shall be calculation by subtracting Selling and Administrative Expenses from Gross…
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: 1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per…
A: Shadee’s budgeted manufacturing cost per visor shall be the total of all the manufacturing costs…
Q: NEKO Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory…
A: Carrying cost refer to the costs incurred in maintaining a given level of inventory. These costs…
Q: Carrefour estimates an annual demand of a grocery product at 5400 kgs. It costs RO 100 to make and…
A: Level at which company should place the order is known as reorder point.
Q: A Store has annual demand of 29,000 units. The annual carrying cost for a unit is $15.5, and the…
A:
Q: Samuelson will produce 20,000 units in January using level production. If each unit costs $500 to…
A: Production = 20,000 Units Opening balance = 10000 Units Sales = 15000 Units Cost per unit = $500
Q: manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of…
A: Solution: Budgeted cash receipts includes cash collection from sales or from accounts receivable.…
Q: ABC company requires 600 units of a material for every six months, ordering cost per order is RO 120…
A: ABC Company's Requires material for every 6 months = 600 units Therefore, Requirement of material…
Q: Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The…
A: EOQ stands for Economic Order Quantity. It is the level of inventory that the organization orders at…
Q: Bintang Berhad manufactures Product BFF and it was sold in the market at the price of RM18 per unit.…
A: Budget means a statement which show future expectation regarding sale , production , cost , profit…
Q: Tiny Corp has the following information: Inventory at the end of May, for example, was only 40…
A: Solution: Number of units that Tiny must produce in June and July are present in the following…
Q: Morgan Inc. predicts sales of 4,000 frames in May & 14,000 units in June. Target end of month…
A: Note : As per the policy, we are supposed to solve first three subparts at a time. Kindly repost the…
Q: 1. MGR Corporation sells table napkins. These are sold by dozen per package for Php 20. They sell…
A: whenever there are production of goods and services there is environment of the cost associated with…
Q: Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4…
A: Solution 1: Sales Budget - Iguana Inc. Particulars April May June 2nd Quarter Total…
Q: Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and 70,000…
A: Step 1 Productivity simply refers to the measurement of how efficient a company's production process
Q: Croy Inc. has the following projected sales for the next five months: Month Sales in Units April…
A: Budget means the expected value of future. Budget is not affected by the actual value as it is…
Q: Shadee Corp. expects to sell 560 sun visors in May and 300 in June. Each visor sells for $21.…
A: Calculation of number of units to be produced:: Particulars. May. June... Sales.…
Q: The Dermaniaga Company has the following information available: Table 3: Total Monthly Sales…
A: Budgets are the estimations that are made for future period of time. Some types of budgets are Sales…
Q: A merchandiser plans to sell 13,500 units next month at a selling price of $110 per unit. It also…
A: Contribution Margin - Contribution Margin is the difference between Sales and Variable Cost.
Q: Shadee Corp. expects to sell 510 sun visors in May and 410 in June. Each visor sells for $17.…
A: Cash receipts refer to all the amounts received in cash by the business owner or organization. It…
Q: The Dermaniaga Company has the following information available: Table 3: Total Monthly Sales…
A: Budgets are the basis of estimation of future course of action. Production budget, direct material…
Q: Nicky's Entrees produces frozen meals, which it sells for $9 each. The company uses the FIFO…
A: Absorption Costing : Absorption costing Includes all manufacturing costs that are assigned to the…
Q: mith Inc. expects to use 96,000 litters of paint annually costing P12 per litter. Inventory carrying…
A: Inventory carrying cost is the cost of keeping items in stock. The larger the volume of inventory,…
Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…
A: Inventory level at which business should place order is known as reorder point in business.
Q: Mario's Foods produces frozen meals, which it sells for $8 each. The company uses the FIFO inventory…
A: 1) A Computation of Product cost per meal produced under absorption costing and under Variable…
Q: Cahuilla Corporation predicts the following sales in units for the coming four months: April May…
A: Working:
Q: ulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory…
A: The total variable cost of production refers to the production cost that changes with the change in…
Q: Carrefour estimates an annual demand of a grocery product at 4800 kgs. It costs RO 100 to make and…
A: Level of inventory at which business should place order for the inventory is known as Reorder point.
Q: The Volt Battery Company has forecast its sales in units as follows: January 1,100 February…
A: The manufacturing company needs materials, labor, and expenses for the production process. Thus, the…
Q: ABC Company has monthly requirement of 900 units of Material B. The ordering cost per delivery is…
A: Solution: Economic order quantity = (2*D*S/H)^1/2 Where D = Demand of year S = Order cost per order…
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: Sapphire Aerospace operates 52 weeks per year, and its costof goods sold last year was $6,500,000.…
A:
Q: Shadee Corp. expects to sell 530 sun visors in May and 350 in June. Each visor sells for $25.…
A: Definition: Flexible overhead budget: A flexible overhead budget is referred to as a thorough plan…
Q: GB Inc. sells 12,000 gallons of ice cream each month from its central storage facility. Monthly…
A: The question is related to total cost of inventory per month. Before we proceeds we have to…
Q: Crawford Steel Corp. buys inventory of 40,000 units annually. The purchase price per unit is $3.00…
A: Inventory Management: Inventory management tools like the economic order quantity, the reorder level…
Q: TS Co has daily demand for ball bearings of 40 a day for each of the 250 working days (50 weeks) of…
A: We have the following information: TS Co has daily demand for ball bearings of 40 a day for each of…
Q: Louie's Meals produces frozen meals, which it sells for $7 each. The company uses the FIFO…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: One Device makes universal remote controls and expects to sell 526 units in January, 575 in…
A: Production budget shows how many units needs to be produced for desired sales and maintaining the…
Q: The trailer company exspects to sell 9000 for $155 each for a total of $1,395,000 in January and…
A: The inventory formula is as follows Opening Inventory+ Additions= Closing Inventory+ Cost of goods…
Q: Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4…
A: Answer - Working Note - 1. Cost per Unit Particular Amt DM 8 DL 6 Variable OH 0.3…
Q: Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories,…
A: In basic terms we have to maintain our inventory by managing properly so that we don't get overstock…
Q: The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of…
A: Annual Requirement of units = Semi annual requirement x 2 Given that: Semi annual requirement =…
Q: [The following information applies to the questions displayed below.] Shadee Corp. expects to…
A: 1) Working Note:
Q: Iguana, Inc, manufactures bamboo picture frames that sel for $30 each. Each frame requires 4 linear…
A: The cash budget is the estimation of cash receipts and payments during the given period. It doesn't…
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: Suppose that the R&B Beverage Company has a soft drink product that shows a constant annual demand…
A: Economic order quantity (EOQ) is a computation that businesses use to determine their ideal order…
Minmax Processing Company has an average requirement of 5 boxes of its product per week. It has been estimated that the ordering cost of Php2.00 and that the carrying cost per unit of inventory is Php0.20. It observes a lead time of two weeks. Determine the total annual inventory cost.
Step by step
Solved in 4 steps with 1 images
- 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?Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and 19,000 in February. Each lens consist of 2.00 mm of plastic costing $2.50 per mm, 1.7 oz of dye costing $2.80 per ounce. and 0.50 hours direct labor at a labor rate of $18 per unit. Desired inventory levels are: Prepare a sales budget, production budget, direct materials budget for silicon and solution, and a direct labor budget.
- Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.Total Pops data show the following information: New machinery will be added in April. This machine will reduce the labor required per unit and increase the labor rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next months requirements. Direct material requires 2 pounds per unit at a cost of $3 per pound. The ending inventory required for direct materials is 15% of the next months needs. In January, the beginning inventory is 3,000 units of finished goods and 4,470 pounds of material. Prepare a production budget, direct materials budget, and direct labor budget for the first quarter of the year.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?
- 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 economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
- Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.