Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How much would be Item X's total annual storage cost? * Php 8,485 O Php 16,971 Php 2,000,000 None of the above
Q: Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses…
A: In inventory management, economic order quantity (EOQ) is a concept that determines the optimal…
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Economic order quantity determines the optimum number of units that reduce cost per unit and…
Q: Being a finance Manager advice the top management that KPR should manufacture the AQ product…
A: A) The decision whether KPR should manufacture the AQ product internally or they should buy AQ…
Q: Annually a company requires 45,000 units of one of its components that it distributes throughout the…
A: *As per bartleby guideline in case of interlinked question answer first 3 only
Q: Electronics Ltd manufactures air conditioners. It purchases 200,000 units of a particular type of…
A: I am answering the first three sub-parts of the question as per bartleby policies. Please submit the…
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Step 1 Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: Material Costing - It refers to the systematic control of storing, purchasing, and consumption of…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION-1 THE ANNUAL INVENTORY RELATED COST IS THE SUM OF THE ANNUAL HOLDING AND ORDERING COST.…
Q: ACE processing company uses 2,400 units of a product per year on a continuous basis. The product…
A: Economic Order Quantity is an inventory management technique where it helps to order the required…
Q: Terminator, Inc., manufactures a motorcycle part in lots of250 units. The raw materials cost for the…
A: Inventory refers to the goods available for sale and raw materials which is used to produce goods in…
Q: A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year…
A: Economic order quantity in costing States the order quantity at which the ordering and carrying cost…
Q: In 2018, SoundSmart Company started its production, specialising in manufacturing motorcycle…
A:
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: ITEM 1 Reorder Point = 4,200 units ITEM 2 Lead Time Demand = 2,500 units ITEM 3 Safety Stock = 1,700…
Q: Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories,…
A: Part 1:-Reorder Point It is the level of inventory at which we need to replenish the inventory…
Q: he General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of…
A: Economic order quantity is that level of reorder quantity which minimizes the total cost of carrying…
Q: A manufacturer has a production facility that requires 17,544 units of component JY21 per year.…
A: Given information, Annual demand(D) =15,544 units Ordering costs(S)=$181 Carrying cost(H) =15.2 % of…
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: Scouts Corp. projects its sales to be 1,000 units this year. As a result of holding inventories,…
A:
Q: Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses…
A: Step 1 Economic order quantity (EOQ) is the ideal order quantity a company should purchase to…
Q: In 2018, SoundSmart Company started its production, specialising in manufacturing motorcycle…
A: When a product is manufactured, there are different costs associated with it. These costs can be…
Q: der. Stora
A: Given: To calculate the inventory of the company as,
Q: A firm manufactures a product from a raw material, which is purchased at 60 per kg. The company…
A: Economic Order Quantity (EOQ) was related with inventory management where it helps to order the…
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: Calla Company produces skateboards that sell for $50 per unit. The company currently has the…
A:
Q: 7 days. Based on ABC’s records, ordering cost average P400 per order. Storage cost per box average…
A: As per BARTLEBY guidelines, when multiple subparts questions are given then solve first six sub…
Q: Immanuel Company has just obtained a request for a special order of 6,000 jigs to be shipped at the…
A: (B). $12,600 increase
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The reorder point refers to the level of inventory at which the stock is purchased to be sold in the…
Q: A firm manufactures a product from a raw material, which is purchased at 60 per kg. The company…
A: Economic Order Quantity (EOQ) was related with inventory management where it helps to order the…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ helps in determining the level of quantity at which an entity can balance its ordering &…
Q: A plastic manufacturing company that makes four major products seeks to expand its operations in the…
A: Note: I am solving the first three subparts. Please repost the remaining subparts separately The…
Q: A plastic manufacturing company that makes four major products seeks to expand its operations in the…
A: Sometimes a company needs to select a operating machine from the various option available to it. The…
Q: Bramble Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The…
A: Here, Details of Old Machine: Cost is $88,000 Overhaul Expenses required for four years is 12,000…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: The EOQ is a company's optimum order quantity that reduces overall costs associated with purchasing,…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: EOQ- It is an sophisticated or ideal quantity that a company should acquire to minimize its cost of…
Q: Rugged Outfitters purchases one model of mountain bike at a wholesale cost of $520 per unit and…
A: a. Following are the calculation of total number of orders:
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: Zen Inc. uses one raw material type in its manufacturing process. It needs 3,750 kilos of this…
A: EOQ refers to the economic order quantity, under EOQ model the total cost of inventory is lower…
Q: Mervin Company produces circuit boards that sell for $8 per unit. It currently has capacity to…
A: 1.
Q: RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist…
A: EOQ or Economic Order Quantity is the order quantity that is ideal for a company to maintain with…
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: Royal Company manufactures 20,000 units of part R-3 each year for use on its production line. At…
A:
Q: Wilson Publishing Company produces books for the retail market. Demand for a current book is…
A: Daily demand (d) Annual demand /no.of working days 7400/250 29.6 copies Daily production (p) Annual…
Q: Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost…
A: Solution:- Carrying cost of inventory means the holding cost of inventory paid in order to store and…
Q: How many times per year would Item X be ordered? *
A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A: SOLUTION- FORMULAS- 1-REORDER POINT=MAXIMUM DAILY DEMAND…
Q: Terminator, Inc., manufactures a motorcycle part in lots of 350 units. The raw materials cost for…
A: Given: Lot size = 350 Raw material cost =$170 Value added = $320 Total cost for completed unit…
Q: Jumbo Company uses 1,100 units of an particular item each year. Carrying the item in inventory costs…
A: Information Provided: Order cost = $150 Carrying cost = $200 Operating days = 250 Total usage = 1100…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
- Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?Item X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How many times per year would Item X be ordered? A. 21xB. 50xC. 40xD. None of the aboveItem X is a standard item stocked in a company’s inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order. How many times per year would Item X be ordered? * None of the above 21x 50x 40x What is Item X's average inventory level? * 40 units 223 units None of the above 48 units How much would be Item X's total annual purchasing cost? * None of the above Php 8,485 Php 2,000,000 Php 16,971 How much would be Item X's total annual procurement cost? * Php 16,971 Php 2,000,000 None of the above Php 8,485 How much would be Item X's total annual storage cost? * Php 8,485 Php 16,971 Php 2,000,000 None of the above How much would be Item X's total annual stockout cost? * Php 16,971 Zero None of the…
- An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. What is the economic order quantity? Based on your answer above, how many orders will be placed per year using the EOQ? Determine the ordering, handling, and total inventory costs for the EOQ. Determine the effective annualized cost of financing for the following credit terms, assuming that (1) discounts are not taken, (2) accounts are paid at the end of the credit period, and (3) use 365=day year: a. 1/10, n/30; b. 3/10, n/30; c. 3/10, n/60; d. 2/10, n/90A hardware store sells paint that has a demand of 9,706 gallons per year. The store purchases the paint from a supplier for 11.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 175 dollars per order. The paint supplier has a lead time of 10 days. What is the annual ordering cost if the store uses the order quantity of 2,103 gallons per order? Assume EOQ model is appropriate. Use at least 4 decimal places.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?
- Sunland, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $25 and are sold for $35. Glass pitchers cost $24 and are sold for $45. All other costs are fixed at $572,000 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year.Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $30 and are sold for $40. Glass pitchers cost $26 and are sold for $47. All other costs are fixed at $280,800 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year. Crane, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $28. What would be the new contribution margin per unit if managers switched to the new supplier? What would be the new breakeven point if managers switched to the new supplier? (Use contribution margin per unit to calculate breakeven units. Round answers to 0 decimal places, e.g. 25,000.)An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s value. It costs approximately $20 to place an order (managerial and clerical costs). The supplier currently orders 100 batteries per month. What is the economic order quantity?