A manufacturer has a production facilitythat requires 17,544 units of componentJY21 per year. Following a long-termcontract, the manufacturer purchasescomponent JY21 from a supplier with alead time of 5 days. The unit purchasecost is $14.4 per unit. The cost to placeand process an order from the supplier is$181 per order. The unit inventorycarrying cost per year is 15.2 percent ofthe unit purchase cost. The manufactureroperates 250 days a year. Assume EOQmodel is appropriate. If the manufactureruses a constant order quantity of 1,017units per order, what is the number oforders per year?Use at least 4 decimal places.

Given information, Annual demand(D) =15,544 units Ordering costs(S)=$181 Carrying cost(H) =15.2 % of…

Answered: A manufacturer has a production…

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 firm orders on average 400 wheels each month. Demand is normally distributed with standard deviation of the monthly demand being 20 wheels. The ordering cost is $8 per order. The cost to buy one wheel is $4 per wheel. Annual carrying costs are 50% of unit cost. The supplier lead time is 2 operating days. The firm operates 240 days per year, in other word, the firm operates 20 days each month. Each order is received from the supplier in a single delivery. There are no quantity discounts. Write your answer and then Round your answer up to the nearest number for future calculation. (e.g 9.6 => 10). Please clearly write down the formulation and calculation for your answers. Note: Here I make the time measures bolded for you to make you pay the attention to their differences. Please notice the difference in times measure units, so that you do not make mistake by doing calculations with different time measures. You need to convert the data to the same time measures before doing any…
Ceder Company has compiled the following data for the upcoming year: Sales are expected to be 16,000 units at $52 each. Each unit requires 4 pounds of direct materials at $2.40 per pound. Each unit requires 2.1 hours of direct labor at $13 per hour. Manufacturing overhead is $4.90 per unit. Beginning direct materials inventory is $5,400. Ending direct materials inventory is $6,950. Selling and administrative costs totaled $138,720. Determine Ceder's budgeted cost of goods sold. Complete Ceder's budgeted income statement.
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
ChimneySweep provides cleaning services for residential chimneys and fireplaces. The cleaning service requires $35 in variable costs for cleaning materials. The fixed costs of labor, the company’s truck, and administrative support are $165,000 per year. ChimneySweep averages 100 service calls per month. What is the average cost per cleaning service call? Round your answer to 2 decimal places.
Western Jeans Co. has an annual plant capacity of 2,000,000 units, and current production is 1,920,000 units. Monthly fixed costs are $400,000, and variable costs are $9 per unit. The present selling price is $15 per unit. On July 6 of the current year, the company received an offer from Childs Company for 50,000 units of the product at $13 each. Childs Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Western Jeans Co. Question Content Area a. Prepare a differential analysis dated July 6 on whether to reject (Alternative 1) or accept (Alternative 2) the Childs order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential AnalysisReject (Alt. 1) or Accept (Alt. 2) OrderJuly 6 Line Item Description Reject Order(Alternative 1) Accept Order(Alternative 2) Differential Effects(Alternative 2) Revenues $Revenues…
Sheridan Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 66% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 34,300 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.05 per unit. If Sheridan Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45,700 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Direct materials. Direct labor Variable overhead costs Fixed manufacturing costs Purchase price Total…
Sheridan Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 50% of direct labour costs. The direct materials and direct labour costs per unit to make the lampshades are $4.50 and $5.50, respectively. Normal production is 48,000 table lamps per year. A supplier offers to make the lampshades at a price of $13.20 per unit. If Sheridan Inc. accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $40,000 of fixed manufacturing overhead currently being charged to the lampshades will have to be absorbed by other products. Prepare the incremental analysis for the decision to make or buy the lampshades. (Round answers to O decimal places, e.g. 5,275. If an amount reduces the net income then enter with a negative sign preceding the number e.g. -15,000 or parenthesis, e.g. (15,000). While alternate approaches are…
Gustavo Fring approached Walt & Jessie Pharmaceutical Co. to buy 50 pounds of product for $50,000 a pound. Regular customers are charged $84,000 for a pound of product. Walt and Jessie Pharmaceutical Co. has the capacity to make 1000 pounds of product per month. The following costs are associated with the company's normal monthly production of the sale of 970 pounds of product: Direct Material per Pound of Product $9,000 Direct Labor per Pound of Product $2,000 Variable MOH per Pound of Product $3,000 Fixed MOH per Pound of Product $3,000 What is the minimum price Walt and Jessie Pharmaceutical Co. would be willing to accept per pound of product for the order? Round your answer to the nearest dollar. Hint: You can solve this problem using the formula for minimum transfer price. Transfer price >= incremental variable costs per unit + (Sacrificed regular contribution margin/ # units transferred) Minimum price = incremental variable costs per unit + ((# units…
Travel Co. ordered parts costing 50,000 Foreign Currency Units (FCU) from a foreign supplier on March 15 when the spot rate was $0.98 per FCU. A one-month forward contract was signed on that date to purchase 100,000 FCU at a forward rate of $0.99 per FCU. On March 31, the forward rate was $1.01. On April 14, when the parts were received and payment was made, the spot rate was $1.03 per FCU. At what amount should inventory be reported? $50,500 O $49,500 $50,000 $49,000 $51,500
The Xenopeltics 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 oer order. On a 360-day basis, determine the following:
Faber Manufacturing, Inc., of St. Paul, Minnesota has an economic order quantity considering backordering of 763, a maximum backordering quantity in units of 480, annual holding cost/unit = $3.5; lead time = 1.4 month (the firm operates 12 months per year). If the firm's customers do not object to backordering and each unit backordered costs $ 4.5/year, then: What is the maximum inventory level?

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