Need help with this general accounting question not use chatgpt A local ice cream shop sells 10,000 cones of vanilla-flavouredice cream each year. The cones are ordered from an outsidesupplier and it takes 5 days for each shipment of cones toarrive. Ordering costs are estimated at $15 per order. Carryingcosts are $5 per cone per year. Assume that the ice cream shopis open 250 days a year. What is the maximum inventory ofcones held in a given ordering cycle?a. 70.71b. 244.95C. 122.47d. 141.42

Step 1: Define Inventory ManagementInventory management is the process through which inventory is…

Answered: A local ice cream shop sells 10,000…

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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A 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.
Phillip F lamm's Computer Store in Texas sells a printer for $200. Demand is constant during the year, and annual demand is forecasted to be 600 units. Holding cost is $20 per unit per year, whereas the cost of ordering is $60 per order.Currently, the company is ordering 12 times per year (50 units each time). There are 250 working days per yea r, and the lead time is 10 days.a) Given the current policy of ordering 50 units at a time, what is the total of the annual ordering cost and the annual holding cost?b) If the company used the absolute best inventory policy, what would be the total of ordering and holding costs?c) What is the reorder point?
Customers at furniture store demand an average of 6,000 bookcases per year. Each time an order is placed, an ordering cost of $300 is incurred. The annual holding cost for a single desk is 25% of the $200 cost of a bookcase. Assume that the lead time to receive an order is one week. a) Each time an order is placed, how many bookcases should be ordered? b) What is the cycle time, T? c) How many orders should be placed each year? d) Determine the total annual costs of meeting the customers' demands for bookcases.
A sport store carries a shoe for men that sells an approximately 3,049 pairs per year. The store purchases the shoes from the manufacturer for $30.2 per pair. The order lead time is 12 days. It costs the store $58 to place and process an order. The annual carrying charge is 24 percent. Assume EOQ model is appropriate and 360 days a year. If the store uses an order quantity of 276 units per order, what is the annual ordering cost? Use at least 4 decimal places.
A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units per working day). It costs P20 to place and receive an order. The shop orders in lots of 400 units. It cost P4 to carry one unit per year of inventory. Calculate the Economic Order Quantity If you are expecting 2 days delay, how much is the safety stock? If you are expecting 2 days delay, how much is the reorder point?
One of the bulk raw beverages, which Blanchard buys, is gin. Assume that the cost of purchasing enough raw gin for one case is $100. Each time they place an order their cost for processing the order is $20. The annual holding cost is 33% of item cost and demand for gin is 2500 cases per year. Calculate the EOQ for this product. If the lead-time is one day, what is the reorder point ROP? What is the annual total cost of this strategy? What is the average inventory? What is the inventory turnover? Please do fast ASAP fast
Tool Mart sells 1,400 electronic water pumps every year. These pumps cost $54.30 each. If annual inventory carrying costs are 12% and the cost of placing an order is $90. What is the firm's EOQ?
A store sells a product that has the annual demand of 16,156 units. It purchases the product from supplier A for $74.4 per unit. The unit inventory carrying cost per year is 14 percent of the unit purchase cost. The cost to place and process an order from the supplier is $107 per order. Supplier A has a delivery lead time of 7 days. The store operates 300 days a year. Assume EOQ model is appropriate. What is the optimal total annual inventory and purchase cost for the store? Use at least 4 decimal places.
Items purchased from a vendor cost $20 each, and the forecast for next year’s demand is 1,000 units. If it costs $5 every time an order is placed for more units and the storage cost is $4 per unit per year, a. What quantity should be ordered each time? b. What is the total ordering cost for a year? c. What is the total storage cost for a year?
SamaCell has a demand of 2,000 cells per year. The cost of each unit is $80, and the inventory carrying cost is $10 per unit per year. The average ordering cost is $30 per order. It takes about two days for an order to arrive and there are 250 working days per year. Round to two decimal places. a) What is the EOQ? units. b) What is the average inventory if the EOQ is used? units. c) What is the optimal number of orders per year? orders. d) What is the optimal number of days in between any two orders? days. e) What is the annual cost of ordering and holding inventory? USD. What is the reorder point (ROP)?
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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. How many pitchers of each type must be sold to break even in the coming year? (Use contribution margin per unit to calculate breakeven units.)

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