Benson Manufacturing Company obtains its raw materials from a variety of suppliers. Benson's strategy is to...
Benson Manufacturing Company obtains its raw materials from a variety of suppliers. Benson's strategy is to obtain the best price by letting the suppliers know thatcit buys from the lowest bidder. Approximately four years ago, unexpected increases in demand resulted in material shortages. Benson was unable to find the material needed even though it was willing to pay premium prices. Because of the lack of raw materials. Benson was forced to close its manufacturing facility for two weeks. Its president vowed that het company would never again be at the mercy of its suppliers. She immediately ordered her purchasing agent to perpetually maintain a one month supply of raw materials. Compliance with the president's orders resulted in raw material amounting to approximately $1,670,000. Warehouse rental and personal costs to maintain the inventory amounted to $8,700 per month. Benson has a line of credit with a local bank that calls for a 14 percent annual rate of interest. Assume that Benson finances the raw material s inventory with the line of credit.
Based on the information provided, determine the annual holding cost of the raw materials inventory.
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Benson Manufacturing Company obtains its raw materials from a variety of suppliers. Benson's strategy is to...
Kenta Manufacturing Company obtains its raw materials from a variety of suppliers. Kenta's strategy is to...
Kenta Manufacturing Company obtains its raw materials from a variety of suppliers. Kenta's strategy is to obtain the best price by letting the suppliers know that it buys from the lowest bidder. Approximately four years ago, unexpected increases in demand resulted in materials shortages. Kenta was unable to find the materials it needed even though it was willing to pay premium prices. Because of the lack of raw materials, Kenta was forced to close its manufacturing facility for two weeks....
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What should Ajanta do about its recent order from SF? AJANTA PACKAGING: KEY ACCOUNT MANAGEMENT Sandeep Puri and Rakesh Singh wrote this case solely to provide material for class discussion...
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Kenta Manufacturing Company obtains its raw materials from a variety of suppliers. Kenta's strategy is to obtain the best price by letting the suppliers know that it buys from the lowest bidder. Approximately four years ago, unexpected increases in demand resulted in materials shortages. Kenta was unable to find the materials it needed even though it was willing to pay premium prices. Because of the lack of raw materials, Kenta was forced to close its manufacturing facility for two weeks....
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signed a long-term noncancelable purchase commitment with its
largest supplier of this raw material on November 30, 2020, at an
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had declined in price to $394,050.
What entry would you make on December 31, 2020, to recognize these
facts? (Credit account titles are automatically
indented when amount is entered. Do not indent...
Our controller, Richard Kimmel is negotiating with potential new
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