(4 marks)(b) Material Y is also used in the manufacture of Product Z and in several otherproducts. The total annual requirement for Material Y is 120,000 litres, used evenly overeach year.The costs of ordering stock and holding stock are as follows:Ordering (K45 per orderHolding KO 30 per litre per annumA safety stock of 2,500 litres of Material 'Y' is held and the average time interval betweenplacing an order for materials and having them delivered is 1-5 weeks. There are 50weeks in a year.Required:Calculate for Material Y the:(i) Economic order quantity(ii) Reorder level(iii) Total annual cost of ordering stock;"(iv) Total annual cost of holding stock.L&(4 marks)(3 marks)1200A(3 marks)(3 marks)

Answered: Image /qna-images/answer/2ab241a9-6b06-4c73-b044-e831e2da6403.jpg

Answered: (4 marks) (b) Material Y is also used…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 15% of purchase price. The price OMR 3 per kg. The company is operating 6 days per week. What is the minimum annual total cost in OMR? Round-up to the nearest integer a. 12184 b. None is correct c.12000 d. 8175 e. 9000
8.2)
A company manufacturing electronics equipment purchases transistors at Rs . 41 per unit. The annual requirement of transistors is 7000 units and the ordering cost is Rs 300 per order , carrying cost is. Rs. 8 per unit, lead time is 7 days. Calculate EOQ and reorder point where per day demand is 28 units ?
Coe Aggregates Ltd has scheduled the production and sale of 35,700 tonnes of aggregates for the Month of April, 2021. Given the following information: Selling prices: $23.15 / tonne Tax rate 30% (of net income) Operating costs Direct material cost: $5.75 /tonne Direct labour cost: $8.05/ tonne Variable overhead costs: $1.56/tonne Fixed overhead cost: $115,820 Selling and Administrative costs Variable: $1.27/tonne Fixed: $28,000 1)Calculate the expected monthly net income after tax (profit) for the month of April 2021 2)Calculate the scheduled production tonnage and sale required to attain a desired net income after tax (profit) of $78,500 for the month of April 2021. PLEASE type or print clearly
The PILLOW Co. manufactures two products, AA and BB. The following are projections for the coming month: AA BBSales P100,000 P150,000Costs: Variable 60,000 40,000 Fixed cost for the period is P45,000. 1. Compute for the total breakeven sales.2. Determine the sales requirement for each product to breakeven.
The following details relate to materials used by Ohiahyeda manufacturing enterprise to produce its product.Normal consumption 4,000Normal delivery period 5yearsMaximum consumption 5,000Minimum delivery period 3yearsThe firm uses 400units per week for its production. The current unit cost of the material is GHȼ 40, the cost of ordering is GHȼ15 and the holding costs are estimated at 6% of material value per year.RequiredCalculatei. Maximum stock levelii. Minimum stock leveliii. Average stock level
ABC company uses 8,000 pens every year. For each pen, cach order cost is $30 and the annual holding cost is 10 per cent of unit cost. The unit cost depends on the quantity ordered as follows: Quantity 1-199 Unit Cost (S) 20 200-499 18 500-799 16 800+ 12 > Assume that demand has a constant rate and do not stockout; a) What is the optimal order size? b) Determine the yearly order quantity
The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15% of the price and its ordering cost at $90 per order. On a 360-day basis, determine the following: To determine the number of orders to be place in a year? A. Total demand per year must be multiplied by the economic order quantity B. Economic order quantity must be divided by the Total demand per year C. Economic order quantity must added to the Total demand per year D. Total demand per year must be divided by the economic order quantity E. Economic order quantity must be subtracted from the Total demand per year
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: May $198,000 April $156,000 a. $49,500 b. $252,000 c. $202,500 d. $153,000 Manufacturing costs* Insurance expense** Depreciation expense Property tax expense*** *Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $900 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments for Finch Company expected in the month of June are 900 1,850 500 900 1,850 June 500 $204,000 900 1,850 500 Previous Next
A factory can produce 1,20,000 units per annum at its optimum (100%) capacity. The estimated costs of production are as under: Direct Material Tk 6 per unit Direct labor Tk 4 per unit Indirect Expenses: Fixed Tk 3,00,000 Variable Tk 2.50 per unit Semi-variable Tk30, 000 per annum up to 40% capacity and an extra expense of Tk 15,000 for every 20% increase in capacity or part thereof. The factory produces only against orders (and not for own stock). If the production of the factory is as indicated below and management desires to earn profit of 20% on sales for the year, work out the average selling price at which each unit should be quoted: First 2 months of the year: 30% capacity: Remaining months of the year 75% capacity. Ignore selling, distribution and administrative overheads.

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