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Name: Calculate the EOQ for exercise 8 if annual demand is 10,000 units,inve
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Description: Calculate the EOQ for exercise 8 if annual demand is 10,000 units,inventory storage costs average 20 percent, unit price is $50, and orderingcosts are $30.

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Calculate the EOQ for exercise 8 if annual demand is 10,000 units,inventory storage costs average 20 percent, unit price is $50, and orderingcosts are $30.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 5CE: Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and...

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Calculate the EOQ for exercise 8 if annual demand is 10,000 units,
inventory storage costs average 20 percent, unit price is $50, and ordering
costs are $30.

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An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are$80 per order, and the cost of carrying inventory is 25%. Calculate the EOQ in unitsand then convert to dollars.
can you help me answer A.
EOQ? CALCULATE
What is the annual ordering cost ?
Annual Demand = 10,000 units Days per year considered in average daily demand = 365 Cost to place an order = $10 Holding cost per unit per year = 0.01% of cost per unit Lead time = 3 days Cost per unit = $15 Determine the economic order quantity and the reorder point. Also find the Annual Ordering and Holding Cost. State some significance of the obtained results.
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
Suppose a company finds that shipping cost is 3,560 each month plus 6.70 per package shipped. What is the cost formula for monthly shipping cost? Identify the independent variable, the dependent variable, the fixed cost per month, and the variable rate.
How many units are estimated to be sold if Kino, Inc., has planned production of 750,000 units, a desired beginning inventory of 30,000 units, and a desired ending inventory of 45,000 units?
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How many units are in beginning inventory if 32,000 units are budgeted for sales, 35,000 units are produced, and the desired ending inventory is 9,000 units?
Sterling Corporation has an EOQ of 5,000 units. The company uses an average of 500 units per day. An order to replenish the part requires a lead time of five days. Required: 1. Calculate the reorder point, using Equation 20.3. 2. Graphically display the reorder point, where the vertical axis is inventory (units) and the horizontal axis is time (days). Show two replenishments, beginning at time zero with the economic order quantity in inventory. 3. What if the average usage per day of the part is 500 units but a daily maximum usage of 575 units is possible? What is the reorder point when this demand uncertainty exists?
The ordering cost for a certain product is $8 per order and the holding cost is $1 per year. The annual demand is 2400 units. Consider the following ordering plans: plan 1: Order all 2400 at one time plan 2: Order 400 once each quarter plan 3: Order 100 once each month Determine: (a) Calculate the annual total costs associated with each plan (plan 1, 2 and 3), and compare the costs (total cost, holding costs and ordering cost). (b) Is there another plan, cheaper than any of these? Calculate the total cost of the cheaper or optimal plan; and for the optimal plan determine how many times in a year an order needs to be in place. (c) In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, will the new EOQ increase or decrease then by what percentage.