6) Answer C $12,600
annual order cost = no. of orders * per order cost
= (1200000/10000)*105
=120*105
=$12,600
7) Answer C
The main objective of economic order quantity is to minimize the ordering cost and carrying cost.
since this cannot be achieved at a once it will be done on the period of time.
So, EOQ main objective to lower the ordering costs and carrying cost.
8) Answer B $58.60
unit cost of good=((2200*56)-6000) /2000
=(117,200/2000)
=$58. 60
6. Expected annual usage of a particular raw material is 1,200,000 units, and standard order size...
9. Rowe Co.'s Job 401 for the manufacture of 2,200 coats was completed during August at the unit costs presented below. Final inspection of Job 401 disclosed 200 spoiled coats that were sold to a jobber for $6,000. Direct Materials $24 Direct Labor 18 Factory Overhead 14 Total Cost $56 Assume that spoilage is attributable to the exacting specifications of Job 401 and is charged to this specific job. What would be the journal entry to record the spoilage? a....
Suppose that the annual demand for a component is approximately 60,000 units. The company orders the component from a supplier who has offered the following quantity discount schedule. Order Quantity Price per Unit 0-999 $30 1,000-1,999 $29 2,000-3,999 $28 4,000 or more $27 If the company’s carrying charge is 15 percent of the item’s price and the cost per order is $150, determine the order quantity that would minimize the total related inventory costs for this component.
If annual demand is 24,000 units, and the order quantity is 3,000 units, which of the following accurately describes the decision-making environment? a. The annual number of order placements will be 8, and average inventory levels will be 1,500 b. The annual number of order placements will be 8, and average inventory levels will be 3,000 c. The annual number of order placements will be 12, and average inventory levels will be 12,000 d. The annual number of order placements...
Question 9 Assume: Demand 3000 units/year Inventory value $80/unit Order placement cost $400/order Annual carrying costs $0.30 per dollar held/yr or"3096" If you supplier calls with a special IX discount of 5%, how much should you buy? Buy a Quantity of 1,334 Buy a Quantity of 1,565 Buy a Quantity of 859 Buy a Quantity of 1462 Buy a Quantity of 1,608 Answers: We were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe...
1.1 ADR Ltd purchases a particular item in lots of 1 250 units. Its annual usage of this item is 6 250 units. Ordering costs are R200 per order and the carrying (holding) costs are R10 per unit per year. Calculate each of the following: 1.1.1 The Economic Order Quantity (EOQ) in units 1.1.2 Number of orders 1.1.3 Cost of orders (Order costs) 1.1.4 Average inventory held 1.1.5 Cost of holding stock (3) 1.1.5 Total cost 1.2 Study the extract...
Question 9 Assume: Demand 3000 units/year Inventory value $80/unit Order placement cost $400/order Annual carrying costs $0.30 per dollar held/yr or"3096" If you supplier calls with a special IX discount of 5%, how much should you buy? Buy a Quantity of 1,334 Buy a Quantity of 1,565 Buy a Quantity of 859 Buy a Quantity of 1462 Buy a Quantity of 1,608 Answers: We were unable to transcribe this imageWe were unable to transcribe this imageWe were unable to transcribe...