One of the products that Justine Corporation sells is "Extra Soft" floor mats. Justine's ordering costs related to the mat is P 12.50 per order. The cost of carrying one mat in inventory for one year is P 16.00. Justine sells 40,000 of these mats evenly throughout the year. 9. What is the economic order quantity of Justine Corporation? a. 250 units b. 350 units c. 400 units d. 500 units

One of the products that Justine Corporation sells is "Extra Soft" floor mats. Justine's ordering costs related to the mat is P 12.50 per order. The cost of carrying one mat in inventory for one year is P 16.00. Justine sells 40,000 of these mats evenly throughout the year. 9. What is the economic order quantity of Justine Corporation? a. 250 units b. 350 units c. 400 units d. 500 units

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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4. How many units must have been completed and transferred if beginning inventory was 75,000 units, ending inventory was 72,000 units, and 290,000 units were started? PLEASE NOTE: For units, use commas as needed (i.e. 1,234). Costs per unit are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56). All other dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Beginning inventory ? Units started ? Total units to account for ? Units completed and transferred out ? Ending inventory ?
The following data relates to component L512: Ordering costs $100 per order Inventory holding costs $8 per unit per annum Annual demand 1,225 units What is the economic order quantity (to the nearest whole unit)? A 175 units B 62 units C 44 units D 124 units
7. Which one of these is not an objective of cost accounting? a.Assisting shareholders in decision making b.Cost control and reduction c.Ascertainment of cost d.Determination of selling price 8. Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 6%. a.283 units b.245 units c.219 units d.310 units
QUESTION 6 Eric Clothing Limited’s annual demand for materials X is 50 000 units, and the ordering cost is P10 000 per order and each unit costs P3 000. The estimated cost of holding unit of stock is 15% of the purchase cost.Required:a. Calculate the economic order quantity (EOQ) and; b. Calculate the total annual costs of material X.
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?
2. Hamid Company consumes inventory of 100,000 units of components per year. The carrying cost per unit is RO 3.50. The fixed order cost is RO 20 per order. The production planning is 365-day year. The delivery time is three days. a. Calculate and interpret the Economic Order Quantity (EOQ). b. At what inventory level should Hamid Company place another order. Interpret.
29- The economic production quantity (EPQ), produced by Al-Anaaqa Company, is 2200 units. The set up cost for each production run is BD 45.375. The annual holding cost per unit of inventory is BD 8 and the annual demand is 160,000 units. Find the total annual costs of inventory if the maximum inventory is 825 units. A. 3,600 B. 12,100 C. 6,600 D. 3,300
The actual price for a product was $43 per unit, while the planned price was $39 per unit. The volume increased by 2,980 to 59,690 total units. Determine the (a) the quantity factor and (b) the price factor for sales. a. Quantity factor $fill in the blank 1 b. Price factor $fill in the blank 3
Sales per unit P15.00Variable production cost 8.00Annual fixed production cost 35,000.00Variable selling expense (unit) 3.00Annual fixed selling expense 15,000.00Produced 12,500 units during the periodNo inventory at January 1 (beg.)Sold 10,000 units 21. The ending inventory under direct costing isa. P25,000 b. P27,500 c. P20,000 d. P32,500 22. Ending inventory under absorption costing isa. P32,500 b. P20,000 c. P25,000 d. P27,000
A) Calculate Economic Ordering Quantity ( EOQ ) if cost of carrying 1 unit in inventory = $24 total demand in units over planning period = 60,000 units ordering cost per order = $800 Common Stock A Common Stock B Probability Return Probability Return .30 11% .20 25% .40 15% .30 6% .30 19% .30 14% .20 22%
ABC plc uses 1,800 units of material each year. The cost of placing an order is £2 and the holding cost per unit of inventory is £0.50 pa. The batch size at which inventory costs will be minimised is equal to:A. 14400 B. 120 C. 60 D. 1,800
Compute for the Economic order quantity, assuming the no of units of materials required annually 20,000 cost of placing the order P29.00, Annual Carrying cost of inventory P 5.4