None A company manufactures a product with the following specifications:Units required annually = 1,200.Holding cost per unit per year = $0.75•Order preparation cost = $12a) Compute the optimum lot size (EOQ).b) Compute the annual inventory cost (holding cost).c) Compute the annual order cost.d) Compute the total cost.

Approach to solving the question:Freeform Detailed explanation: (a) Economic Order Quantity (EOQ)The…

Answered: A company manufactures a product with…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EB: The cost data for BC Billing Solutions for the year 2020 is as follows: Using the high-low method,...

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1. Calculate Economic Order Quantity (EOQ), number of orders, annual ordering costs, annual carrying costs and total inventory costs from the following:Annual consumption: 6000 unitsCost of placing one Order: RO 60Carrying cost per unit: RO 22. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units.4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 unitsper month. The valve cost of…
From the following particulars, calculate the Economic Order Quantity (EOQ): Annual requirements 1,600 units Cost of materials per units Rs. 40 Cost of placing and receiving one order: Rs. 50 Annual carrying cost for inventory value 10%
•The material DX is used uniformly throughout the year. The data about annual requirement, ordering cost and holding cost of this material is given below: • Annual requirement: 3,400 units • Ordering cost: OMR 15 per order • Holding cost: OMR 0.70 per unit •What will be the economic order quantity (EOQ) of material DX a. 3817.254 b. 318.72 c. 381.72 d. 3187.254 ....... Answer the Question based the data given below Opening Stock 25000 Closing Stock 35000 Net purchases 130000 Manufacturing expenses 30000 What will be the inventory turnover ratio? a. 6 b. 5 c. 4.5 d. 4
The activity driver for the shipping activity of Withstand Inc. is the number of orders shipped. Product A uses 30 orders, and Product B uses 70 orders. Calculate the consumption ratios for each product. (Note: Round your answers to two decimal places.) a.0.30; 0.70 b.0.25; 0.75 c.0.20; 0.80 d.0.65; 0.35
Solve for the cost line equation using the high-low method: \table[[Month, Units Produced,Total Cost], [1,4,500,$ 38,000
Suppose the relevant carrying cost per unit per year was $20 and the relevant ordering cost per purchase order was $200. Suppose further that Alpha calculates EOQ after incorrectly estimating relevant carrying cost per unit per year to be $10 and relevant ordering cost per purchase order to be $400. Calculate the actual annual relevant total costs of Alpha’s EOQ decision. Compare this cost to the annual relevant total costs that Alpha would have incurred if it had correctly estimated the relevant carrying cost per unit per year of $20 and the relevant ordering cost per purchase order of $200 Calculate and comment on the cost of the prediction error.
Unit operating expenses for an item costing $54 are estimated at 30% of cost, and the desired operating profit is 20% of cost a. Determine the selling price. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Selling price b. Determine the rate of markup on cost. (Do not round intermediate calculations and round your final answer to 1 decimal place) Markup on cost c. Determine the rate of markup on selling price (Do not round Intermediate calculations and round your final answer to 1 decimal place.) Markup on selling price
provide the following answers for antonios prime cost, total manufacturing cost and total period cost
Alpha Company’s Manager is considering selling price for product C.The company is using Absortion Costing in determining the total cost for each product.From the financial perspective, the company is planned to operate with cost:Production Expence Rp 3.000.000.000Administration Expense 200.000.000Marketing Expense 300.000.000The predicted total asset in the beginning year is Rp 4.000.000.000, and the return ofinvestment (ROI) is 25%Determine the mark up percentage for product C in Alpha Company using Cost-PlusPricing Method and Absortion Costing! From the results of the mark up percentage for product C in question above, determinethe selling price per kg using the Cost-Plus Pricing method based on the AbsortionCosting Approach and the company's normal capacity for product C of 1,000,000 kg!
PLEASE DO PART B Harper Enterprises has an average annual demand of 45,000 units for its main product line. The cost of setting up for one production run of its product is $520 and the cost of carrying one unit in inventory for one year is $7.49. Required: Use the economic-order-quantity model to determine the optimal order size. The answer to part a is 2,500 Calculate the TARC(Total annual relevent cost) for the EOQ calculated in part a. What is the answer to Part B?
Which answer is correct?
The number of shipments received to compute activity based costs?

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