Q.4per kg. The company incurs a handling cost of Rs. 370 plus freight of Rs. 380 per order. TheA company manufactures a product from a raw material which is purchased at Rs. 80Rs. 12 per kg per annum. The annual production of the product is 1,00,000 units and 2.5 unitsaddition, the cost of working capital finance on the investment in inventory of raw material isincremental carrying cost of inventory of raw material is Rs. 0.25 per kg per month. Inare obtained from 1 kg of raw material.Required:(i)(ii)(iii)Calculate economic order quantity of raw material.Advise that how frequently order for procurement should be placed.If the company proposes to rationalize placement of orders on quarterly basis,what percentage of discount in the price of raw materials should be negotiated?Assume 360 in a year.Answers:Ordering costInv. Carrying costEOQFrequency of ordersDiscount requiredRs. 750Rs. 152,000 Units18 days@1.50%; Rs. 48,000

1. Calculate economic order quantity of raw material.EOQ = √(2 * Annual Demand * Ordering Cost /…

Answered: Q.4 per kg. The company incurs a…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

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5. Expected annual Usage of materials is 2,000,000 units, and per order quantity is 10,000 units. The invoice cost of each unit is Rs.500, and the cost to place on purchase order is Rs.80. Total Cost: А. 8million В. 16million С. zero D. None of the above 6. Based on the information in (5), the estimated annual order cost is: А. Rs.16,000 В. Rs.100,000 Rs.32,000 С. D. Rs.50,000
37 Shipping expense is P9,000 for 8,000 pounds shipped and P11,250 for 11,000 pounds shipped. Assuming that this activity is within the relevant range, if the company ships 9,000 pounds, its expected shipping expense is closest to (nearest peso):
Prime Cost is Rs. 72,000, Direct Material Cost is Rs. 45,000, Direct Expenses is Rs. 12,000. Calculate Direct Labour cost a. Rs. 15,000 b. Rs. 27,000 c. Rs. 60,000 d. Rs. 1,29,000
Kindly provide the correct options for the following three questions
Vernon Corporation incurs the following annual fixed costs. Item Cost $ 52,000 120,000 85,000 9,000 Depreciation officers' salaries Long-term lease Property taxes Required Determine the total fixed cost per unit of production, assuming that Vernon produces 1,500, 2,000, or 2,500 units. (Round your answers to 2 decimal places.) Units Produced 1,500 2,000 2,500 Fixed cost per unit
Cost (per unit) Material `Rs. 50, Labour Rs `25, Direct Expenses Rs 15, Fixed Ex- pense Rs 10, Profit Rs 20, Selling Price Rs. 120. The production capacity of the factory is 10,000 units. At present, a supplier has offered to sell the same item for 95 Should the company produce the Item or buy it from the suppler? Give reasons.
Calculate the prime cost from the following information: Direct material purchased: R 100,000 Direct material consumed: R 90,000 Direct labour: R60,000 * Direct expenses: R 20,000 Manufacturing overheads: R 30,000
ABC Corporation estimates handling cost at two-act levels:
A recent income statement of Company A reported the following data: Units sold 8,000Sales revenue ₱7,200,000Variable costs ₱4,000,000Fixed costs ₱1,600,000 If the company desired to earn a target net profit of ₱480,000, it would have to sell:A. 1,200 units. B. 2,800 units. C. 4,000 units. D. 5,200 units.
The standard cost card for a product shows, Material cost 2 kg @ GH¢2.50 each = GH¢5.00 per unit Labour 2 hours @ GH¢10 each = GH¢20 per unit The actual which has emerged from business operations are as follows. Production – 8,000 units, material consumed – 16,500 kg @ GH¢2.40 each = GH¢39,600, Wages paid 18,000 hours @ GH¢8 each = GH¢144, 000 Calculate; a) Labour Cost Variance b) Labour Rate Variance c) Labour Efficiency Variance d) Material Cost Variance e) Material Price Variance f) Material Quantity Variance
You are required to prepare a statement showing the working capital required to finance a level of activity of 18000 units from tile following information: Particulars Amount per unit (Rs.) Raw Materials 12 Direct Labour 3 Overheads 9 Total Cost 24 Profit 6 Selling Price 30 (a) Raw materials are in stock on an average for 2 months. (b) Materials are in process on an average for 1/2 a month. (3) Finished goods are in stock on an average for 2 months. (d) Credit allowed by creditors is 2 months. (e) Credit allowed to debtors is 3 months. (f) Lag in payment of wages is 1/2 a month. (g) Cash on hand and at bank is expected to be Rs. 7000.
The gross profit margin of the company BIOMETAL was 106.000 euros. The cost of of goods produced was 410,000 euros. The initial stocks of finished products were 65,000 euros and the final stocks of finished products were 72,000 euros. The company's sales amounted to (amounts in euros): 905.000 509.000 475.000 403.000

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