P3-3 Aeon Laketown predicts that 10,000 units of materials will be used during the year.The expected daily usage is 40 units. The expocted lead time is 6 days, and there is asafety stock of 300 units. Aeon expects that the cost of materials will be P480 per unit. Itanticipales that it will cost P200 to place each order. The annual carrying cost is P1.00 per.unit.Required:a. Calculate the order poinl.b. Calculate the economic order quantity.. Calculate the total ordering and carrying costs at EOQ point.CS Scanned with CamScanner

Economic order quantity is that level of quantity to order at which company has to spent overall…

m3 Aeon Laketown prodicts that 10,000 units of materials will be used during the year. The expected daily usage is 40 units. The expocted lead time is 6 days, and there is a safoty stock of 300 units. Aeon expects that the cost of materials will be P480 per unit. It anticipates that it will cost P200 to place each order. The annual carrying cost is P1.00 per. unit. Required: a. Calculate the order point. b. Calculate the oconomic order quantity. . Calculate the total ordering and carrying costs at EOQ point.

m3 Aeon Laketown prodicts that 10,000 units of materials will be used during the year. The expected daily usage is 40 units. The expocted lead time is 6 days, and there is a safoty stock of 300 units. Aeon expects that the cost of materials will be P480 per unit. It anticipates that it will cost P200 to place each order. The annual carrying cost is P1.00 per. unit. Required: a. Calculate the order point. b. Calculate the oconomic order quantity. . Calculate the total ordering and carrying costs at EOQ point.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please solve all questions
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
Salam's company expects its production of pipes will require 600,000 tons of aluminum over its planning period . Demand for pipes products is stable over time. Ordering costs amount to an average of $ 15.00 per order. Holding costs are estimated at $1.4 per ton of aluminum. Find the following : Economic order quantity (EOQ) is
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.
Answer all subparts a to f.if answered within 30mins,it would be helpful Accounting ETS manufactures a component for its computer products. The annual demand for thiscomponent is 2500 units. The annual cost of maintaining inventory is10% per unit and the cost of preparing an order and setting up productionfor the order is $ 50.The machine used to make this part has a production rate of 10,000units per year and the cost is $ 22 per unit.a. Find the EPQ(Economic Production Quantity)A. How long does it take to produce the batch?B. How many batches will be produced per year?C. What is the maximum inventory level?D. What is the total cost per year?E. A supplier offers to sell a similar component for $ 25 per unit with a charge$ 5 per service per order. Should the company accept the offer?F. Find the average inventory level for each situation
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
need answer with brief explanation
Whispering Winds Inc. has been manufacturing capacity, and variable manufacturing and direct labour costs per unit to make the A supplier offers to make the lampshades per year. variable manufacturing costs will be its own shades for its table lamps. The company is currently operating at 100% of overhead is charged to production at the rate of 50% of direct labour costs. The direct materials lampshades are $4.70 and $5.60, respectively. Normal production is 48,800 table lamps at a price of $13.50 per unit. If Whispering Winds Inc. accepts the supplier's offer all eliminated, but the $41.300 of fixed manufacturing overhead currently being charged to the lampshades will have to be absorbed by other products
Economic order quantity. J and L. Sloan Company estimates the demand for its CQ10 bearings at 50,000 units a year. the bearings cost $6 each. ordering cost is $90 per order and carrying cost is 24 percent of product cost. Required: a) compute the economic order quantity b) how many orders a year will the company place if it orders the economic order quantity?
2. MGS a manufacturing company placed an order of 24,000 units semiannually at a price of 20 per unit. Its carrying cost is 15% and the order cost is 12 per order. Compute the following:a) What is the most economical order quantity?b) How many orders need to be placed?