PROBLEM 1 The following information pertains to CACHING Corporation's Material X: Annual Usage 25,200 units Working days per year 360 days Normal lead time in working days 30 days Safety Stock 1,050 units The maximum lead time in working days and the reorder point for Material X are PROBLEM 2 Using the EOQ Model, Tokyo Company computed the economic order quantity for one of the materials it uses in its production to be 4,000 units. The Company maintains safety stock of 300 units. The quarterly demand for the material is 10,000 units. The order cost is 200 per order. The purchase price of the material is P4. The annual Inventory carrying cost is equal to 25% of the purchase price. 1) What is the annual inventory carrying cost? 2) The total inventory order cost per year is PROBLEM 3 The following information pertains to AAA Manufacturing Company's Product X: Annual Demand 22 750 units

PROBLEM 1 The following information pertains to CACHING Corporation's Material X: Annual Usage 25,200 units Working days per year 360 days Normal lead time in working days 30 days Safety Stock 1,050 units The maximum lead time in working days and the reorder point for Material X are PROBLEM 2 Using the EOQ Model, Tokyo Company computed the economic order quantity for one of the materials it uses in its production to be 4,000 units. The Company maintains safety stock of 300 units. The quarterly demand for the material is 10,000 units. The order cost is 200 per order. The purchase price of the material is P4. The annual Inventory carrying cost is equal to 25% of the purchase price. 1) What is the annual inventory carrying cost? 2) The total inventory order cost per year is PROBLEM 3 The following information pertains to AAA Manufacturing Company's Product X: Annual Demand 22 750 units

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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Help solve all questions AXY LTD company is planning to use the economic order quantity model to determine the optimal order levels of raw materials. Material Z is consumed evenly over the year and the current usage is 120,000 units of a particular item in the year ahead. The item is purchased in boxes and each box containing 12 units of the material Z, at a price of RM252 per box. A safety inventory of 250 boxes is kept. The cost of placing and handling orders is estimated to be RM6,300, which is based cost incurred for similar orders that have already made. The cost of RM6,300 was for 30 orders. The inflation of 2 per cent should be added to the above ordering costs. Besides, the company estimates to be charged the transporation cost of RM15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. Other costs which relate to material Z such as insurance, interest and space costs for a year, were calculated at 15 % of the purchase price.…
Algee Ltd plans to manufacture kettles and the following information is applicable: Estimated sales for the year 20.15 Estimated costs for the year 20.15 Direct material 14 000 units at R80 each R24 per unit Direct labour Factory overheads (all fixed) Selling expenses Administrative expenses (all fixed) R4 per unit R48 000 per annum 30% of sales R78 000 per annum 3.1 Calculate the break-even quantity 3.2 Calculate the break-even value using the marginal income ratio. 3.3 Calculate the selling price per unit if the profit per unit is R4. 3.4 Calculate the new break-even quantity and value if selling price is increased by 10%. 3.5 Calculate the selling price if 14 000 units provide an operating profit of RO after an additional advertising expense of R54 000
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Subject: accounting
Knox Corporation manufactures an item. The cost structure is: Manufacturing $100 $800,000 Variable cost per unit Total fixed cost Selling & Administrative $30 $203,000 In its first year of operations, Knox Corporation produced 70,000 items and sold 64,000 at $200 each. Part 1: What is the contribution margin at the end of the first year of operations under the variable costing method? Part 2: Which costing method (variable or absorption) will generate a higher net operating income in Knox Corporation's first year of operations and by how much? Hint: See page 6-21 Illustration 6A- for Variable Costing model and page 6-20 Illustration 6A guidance on Absorption Costing model.
The theoretical velocity is A. 2.32 units per hour B. 2.44 units per hour C. 2.5 units per hour D. 2.75 units per hour
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Question 6 Amundsen Company makes 60,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct Materials Direct Labor Variable Manufacturing Overhead Fixed Manufacturing Overhead Variable Selling Fixed Selling Total $ 10.10 $17.40 $ 2.70 $15.00 $ 2.75 $ 3.25 $51.20 An outside supplier has offered to sell the company all of these parts it needs. If the company accepts this offer, the facilities now being used to make the part would be idle and fixed manufacturing overhead would be reduced by 80% of current cost. The variable selling costs would be reduced to 40% of current cost. Required: What is the maximum amount the company should be willing to pay an outside supplier per unit for the part?
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3A
A company selling a single product with the cost of producing and selling a single unit of this product at the company's normal activity level of 60000 units per year. Direct material $5.10 Direct labor $3.80 Variable management overhead $1.00 Fixed manufacturing overhead $4.70 Variable selling and administrative expenses $1.50 Fixed selling and administrative expense $2.40 Capacity per year 75000 units Normal selling price per unit $21.00 Question: an order was received as a mail-order house for 15000 units at $14.00 per unit. This order would not affect the company's regular sales or the companies total fixed cost. What is the financial advantage or disadvantage of accept this special order? Thank you,
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