1. In 2021 ABC company will produce 2,700 units of the product. Each unit of product requires 4 kg of raw materials. To meet these raw materials, the company must buy them through advance orders. The price of raw materials needed is estimated to remain at IDR 5,000 per kg. Booking fee IDR144,000 per order, and a storage fee of IDR 2,000 per kg per year. From this information, calculate (1 year is 360 days) A. The amount of EOQ and the total cost for the procurement of raw materials above B. The most economical frequency of purchasing raw materials in a year C. Reorder Point ( ROP) if the lead time is 2 weeks

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Please solve the sub parts A,B,and C. Please no reject im needed in 120 minutes thank u

1. In 2021 ABC company will produce 2,700 units of the product. Each
unit of product requires 4 kg of raw materials. To meet these raw
materials, the company must buy them through advance orders. The
price of raw materials needed is estimated to remain at IDR 5,000 per
kg. Booking fee IDR144,000 per order, and a storage fee of IDR 2,000
per kg per year. From this information, calculate (1 year is 360 days)
A. The amount of EOQ and the total cost for the procurement of raw
materials above
B. The most economical frequency of purchasing raw materials in a
year
C. Rec
ler Point ( ROP) if the lead time is 2 weeks
Transcribed Image Text:1. In 2021 ABC company will produce 2,700 units of the product. Each unit of product requires 4 kg of raw materials. To meet these raw materials, the company must buy them through advance orders. The price of raw materials needed is estimated to remain at IDR 5,000 per kg. Booking fee IDR144,000 per order, and a storage fee of IDR 2,000 per kg per year. From this information, calculate (1 year is 360 days) A. The amount of EOQ and the total cost for the procurement of raw materials above B. The most economical frequency of purchasing raw materials in a year C. Rec ler Point ( ROP) if the lead time is 2 weeks
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Balance Of Payment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education