Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 52 weeks in a year. Refer to the standard normal table for z-values. > Demand = 83,200 units/year > Ordering cost = $32.50/order > Holding cost = $3.50/unit/year > Average lead time = 1 week > Standard deviation of weekly demand = 200 units a. The economic order quantity for this item is to the nearest whole number.) units. (Enter your response rounded

Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is available on the item. The firm operates 52 weeks in a year. Refer to the standard normal table for z-values. > Demand = 83,200 units/year > Ordering cost = $32.50/order > Holding cost = $3.50/unit/year > Average lead time = 1 week > Standard deviation of weekly demand = 200 units a. The economic order quantity for this item is to the nearest whole number.) units. (Enter your response rounded

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 17P

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Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $50 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
Click the Chart sheet tab. On the screen is a column chart showing ending inventory costs. During a deflationary period, which bar (A, B, or C) represents FIFO costing, which represents LIFO costing, and which represents weighted average? Explain your reasoning. On January 4 following year-end, Rio Enterprises received a shipment of 60 units of product costing 580 each. These units had been ordered by Del in December and had been shipped to him on December 27. They were shipped FOB shipping point. Revise the FIFOLIFO3 worksheet to include this shipment. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as FIFOLIFOT. Using the FIFOLIFO3 file, prepare a 3-D bar (stacked) chart showing the cost of goods sold and ending inventory under each of the four inventory cost flow assumptions. No Chart Data Table is needed. Use the values in the Calculations Section of the worksheet for your chart. Enter your name somewhere on the chart. Save the file again as FIFOLIFO3. Print the chart.
Akira Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $25 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
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Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. Item cost Order cost Annual holding cost (N) Annual demand Average demand $ 11.00 $257.00 33 26,600 532 Standard deviation of weekly denand Lead time Service probability 30 units /order % of item cost units /week 2 week 98% a. Determine the order quantity and reorder point. (Use Excel's NORMSINV( ) function to find your z-value and then round that z- value to 2 decimal places. Do not round any other intermediate calculations. Round your final answers to the nearest whole number.) Optimal order quantity units units Reorder point b. Determine the annual holding and order costs. (Do not round any intermediate calculations. Round your final answers to 2 decimal places.) Holding cost Ordering cost C. Assume a price break of $60 per order was offered for purchase quantities of 2,000 units per order. If you took advantage of this price break, how much would you save annually? (Do…
. A company does an ABC analysis of its inventory and calculates that out of 10,000items, 19% can be classified as A items, 30% as B items, and the remainder as Citems. A decision is made that A items are to be cycle counted twice a month, Bitems every 3 months, and C items once a year. Calculate the total counts and thecounts per day by classification. There are 250 working days per year.
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Suppose that a firm applies the continuous- review inventory model to management its inventory of a product. Daily demand follows the normal distribution with mean 20 units and standard deviation 3 units. The firm currently uses the order size Q=500 units. Order lead time is 4 days. Assuming 300 working days in a year, what is the time between the placement of two consecutive orders? a. 4 days b. 12days c. 25days d. 30days e.none of ghe above
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
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The problem is stated in the picture. Here is the question: 1. Assume instead, the Company uses the Moving Average method in the measurement of its inventories, how much would be the weighted average cost per unit of the sales made at May 20? (Round off the final answers to two decimal places)