3.2 Sadida (Pty) Ltd sells different grades of cheese to the general public as well as to other retailers. The company hiredyou as its management accountant two months ago. Recently, you have been tasked with instituting measures toreduce the company's rapidly increasing costs. After some research, you have come to the realization that thecompany does not make use of Economic Order Quantity (EOQ) and you believe that this will be a good place to startyour cost-reduction journey. You have therefore rounded up the following information regarding one of its products:2 650 unitsWeekly demandPurchase price per unitR180Cost of placing an orderR230Insurance10% of the purchase priceR17 per unit2 weeks1 week's demandDirect stockholding costsLead timeSafety inventoryRequired:3.2.1 Calculate the economic order quantity for the company. Note: round off your answer to the nearest whole number.13.2.2 Calculate the total ordering cost for the company. Note: Round off your calculations to the nearest whole number.3.2.3 Calculate the reorder point for the company

Economic order quantity refers to the quantity of material to be recorded at one time. This quantity…

Required: 3.2.1 Calculate the economic order quantity for the company. Note: round off your answer to the nearest whole number. 3.2.2 Calculate the total ordering cost for the company. Note: Round off your calculations to the nearest whole number. 3.2.3 Calculate the reorder point for the company

Required: 3.2.1 Calculate the economic order quantity for the company. Note: round off your answer to the nearest whole number. 3.2.2 Calculate the total ordering cost for the company. Note: Round off your calculations to the nearest whole number. 3.2.3 Calculate the reorder point for the company

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Accounting records for The Ralston Company show the following for the most recent fiscal year: Units…

A: Income statement is the financial statement which is prepared by the entity for the purpose of…

Q: When the gross profit percentage of costs is 32%, the gross profit percentage of sales is equal to:…

A: Gross profit % is calculated by the formula such as :- Gross profit % = Gross profit /revenue.

Q: Bramble Inc. is a retailer operating in British Columbia. Bramble uses the perpetual inventory…

Q: During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured…

A: The income statement is prepared to record the revenues and expenses of the current year. The income…

Q: 1. Compute the given in your module dated December 2018 using vertical analysis 2. Interpret the…

A: Income statement shows the profit earned or loss incurred during the period.

Q: Bramble Juice Company produces and distributes concentrated orange juice. It has been operating in…

A: The cost of the support department is allocated to the operating segments of the company. The…

Q: Assume a merchandising company uses the high-low method to separate any mixed costs into their…

A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Q: 1. Create a new Excel sheet in which you will find the delivery cost for each delivery. a. Create a…

A: Stepwise Details of how to set up this Excel sheet, including the VLOOKUP function and the pivot…

Q: Provide all 8 solutions

A: Montoure Company's inventory and sales data lead to the following results:Cost of Goods Available…

Q: GG Merchandise has two producing and two service departments labeled P1, P2, S1 and S2,…

Q: 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your…

A: Detailed Gross Profit Calculation for Each Costing MethodFIFO:• Sales: 1420 units x $85 = $120,700•…

Q: The following is a statement about a multiple-step income statement, EXCEPT A. There is a section…

A: Multiple step income statement as the name suggests shows the calculation of income in various steps…

Q: Sales Variable costs Contribution margin Fixed costs Asha Inc. $157,000 (63,000) $94,000 (47,000)…

A: Hhyyynfvhg uhhjjyh

Q: PLEASE

A: Safety Stock = (Maximum daily use x Lead time in working days) - (Normal daily use x Lead time in…

Q: MULTIPLE CHOICE Which of the following must be maintained by the company to have an effective…

A: As you have asked more than one question, these all are not interlinked so as per guidelines we can…

Q: A-1 complete the table under the current cost system. A-2 determine which products, if any, should…

A: Overhead costs are indirect costs related to production and manufacturing of product and these costs…

Q: Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its…

A: Income statement: The financial statements consist set of statements. The three major statements in…

Q: Unit sold 8,900 20,100 5,300 Sales $267,000 $319,000 $148,400 Variable expenses 124,600…

A: Solution:- Particulars Case #1 Case #2 Case #3 Case #4 Unit sold 8,900 14,500…

Q: Calculate the weighted-average contribution margin. Determine Sugar Donuts' monthly breakeven point…

A: Businesses can evaluate break-even points, determine suitable pricing schemes, and make…

Q: Explain the concept of customer profitability analysis. Give examples of cost drivers used in this…

A: Customer Profitability Analysis is a technique of noting down and analysing various costs and…

Q: What will you use to allocate the cost of the purchasing department? a.Number of purchase orders…

A: Answer) The correct answer in the given question is: Number of purchase orders generated…

Q: Prepare the Income Statement of Abbey Limited for the month ended 31 March 2023 using the following…

A: Answer:- Income statement:- An income statement of an entity is a financial statement that lists the…

Q: Use the information givenbelow to prepare the Income statement of Kendall Manufacturers for October…

A: The income statement can be prepared using different methods as variable and absorption costing. The…

Q: Activity-Based Customer-Driven Costs Suppose that Stillwater Designs has two classes of…

A: Activity-Based Costing:— Under this method, overhead is allocated between products on the basis of…

Q: Assume you are the department 8 manager for Marley's Manufacturing. Marley's operates under a…

A: The income statement includes all the revenue and expenses. The resulting amount after deducting…

Q: O'Brien Company manufactures and sells one product. The following information pertains to each of…

A: The FIFO method implies that older inventory is sold out and newer inventory is left in the stock.…

Q: Fernando Garza's firm wishes to use factor rating to help select an outsourcing provider of…

A: a) : Original Weighted Average Calculation**In a, the original weights and ratings are provided for…

Q: • Create a fictitious company • Provide a narrative about this company • Determine a cost driver…

A: Fictitious Company Narrative: EcoClean, is a small business that specializes in producing and…

Q: Stuart Company operates three segments. Income statements for the segments imply that profitability…

A: Comparative income statement: It is a statement showing the income and expenses of business of…

Q: In operations management, 'make-to-order' production strategy is characterized by: a) Producing…

A: In operations management, the 'make-to-order' production strategy is a business production strategy…

Q: Number of units produced and sold Sales Selling Price per unit Variable Selling Expense per unit…

A: Cost of Goods sold :— It is the total cost of units sold during the period. Cost of Goods Sold =…

Q: Rundle Company operates three segments. Income statements for the segments imply that profitability…

A: Segmented Income Statement: A segmented income statement provides a more thorough analysis of…

Q: 1. You have been provided with the following data regarding shipments and costs for Brighton…

A: High-low method is one of the method to separate the variable cost and fixed cost from the mixed…

Q: Prepare a contribution margin format income statement; answer what-if questions Shown here is an…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: a. Prepare an income statement based on full absorption costing. Only use a negative sign with your…

A: a) Income Statement based on absorption CostingAbsorption Costing Income Statement…

Q: If Toyota Motor Company receives an order on May 1, begins production on May 19, and ships the order…

A: The Manufacturing Cycle Efficiency (MCE) ratio is calculated by dividing the value-added time by the…

Q: Prepare the Income Statement of Abbey Limited for the month ended 31 March 2023 using the following…

A: Answer:- Income statement:- An entity's revenue and expenses are listed on its income statement,…

Q: Accel Corp. makes two products: C and D. The following data have been summarized: View the data…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

Q: Fill in the missing amounts in each of the eight cases below. Each case is independent of the…

A: To compute the contribution margin, one must subtract the variable expenses from the sales. The…

Q: XYZ Company has the following balances for the current month: Direct materials used OMR 24,000…

A: 1) Correct Answer = Option B = None of the given Answers Explanation Calculation of Manufacturing…

Q: Please Do not Give image format Allocate manufacturing, ordering, and selling costs to the two…

A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…

Question

3.2 Sadida (Pty) Ltd sells different grades of cheese to the general public as well as to other retailers. The company hired
you as its management accountant two months ago. Recently, you have been tasked with instituting measures to
reduce the company's rapidly increasing costs. After some research, you have come to the realization that the
company does not make use of Economic Order Quantity (EOQ) and you believe that this will be a good place to start
your cost-reduction journey. You have therefore rounded up the following information regarding one of its products:
2 650 units
Weekly demand
Purchase price per unit
R180
Cost of placing an order
R230
Insurance
10% of the purchase price
R17 per unit
2 weeks
1 week's demand
Direct stockholding costs
Lead time
Safety inventory
Required:
3.2.1 Calculate the economic order quantity for the company. Note: round off your answer to the nearest whole number.
1
3.2.2 Calculate the total ordering cost for the company. Note: Round off your calculations to the nearest whole number.
3.2.3 Calculate the reorder point for the company

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

D Question 1 Examine the following income statement. What is the value of NMC? (Round your answer to the nearest dollar. Do not enter the dollar symbol.) Table 1. Hypothetical Income Statement Item Total Sales Revenue Cost of Goods Sold Parts & Materials $2,500,000 Direct Labor $1,000,000 Gross Profit Margin Marketing Expenses Salesforce Expenses $1,500,000 Sales Commissions $500,000 Trade and Media Advertising $300,000 Point-Of-Sale Materials $100,000 Coop Ad Allowances $500,000 Shipping Expenses $800,000 Manufacturing Overhead General & Administrative Expenses Administrative Overhead $250,000 Executive Salaries & Benefits $400,000 Operating Profit Dollar Amount $12,079,499 $3,500,000 $6,500,000 $3,700,000 $800,000 $650,000 $1,350,000
7. Which one of these is not an objective of cost accounting? a.Assisting shareholders in decision making b.Cost control and reduction c.Ascertainment of cost d.Determination of selling price 8. Calculate EOQ from the following details: Consumption per month is 2,000 units, ordering cost is RO 10 per order, purchase price is RO 100 per unit and annual carrying cost is 6%. a.283 units b.245 units c.219 units d.310 units
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Estimated Variable Cost Fixed Cost (per unit sold) Production costs: Direct materials $50.00 Direct labor 30.00 Factory overhead $350,000 6.00 Selling expenses: Sales salaries and commissions 340,000 4.00 Advertising 116,000 Travel 4,000 Miscellaneous selling expense 2,300 1.00 Administrative expenses: Office and officers' salaries 325,000 Supplies 6,000 4.00 Miscellaneous administrative expense 8,700 1.00 Total $1,152,000 $96.00 It is expected that 12,000 units will be sold at a price…
Please do not give solution in image format thanku
Do not give solution in image format
Please help answer
Please Correct answer With Explanation And Do not Give solution in image format
Fill in the missing amounts in each of the eight cases below. Each case is independent of the others. (Hint: One way to find the missing amounts would be to prepare a contribution format income statement for each case, enter the known data, and then compute the missing items.) Required: a. Assume that only one product is being sold in each of the four following case situations: b. Assume that more than one product is being sold in each of the four following case situations: Complete this question by entering your answers in the tabs below. Required A Required B Assume that only one product is being sold in each of the four following case situations: Units sold Sales Variable expenses Fixed expenses Net operating income (loss) Contribution margin per unit Case 1 Case 2 Case 3 Case 4 9,100 20,800 5,800 $ 254,800 $ 296,100 $ 191,400 163,800 291,200 87,000 175,000 75,000 $ S (62,200) $ 8 $ 54,600 $ 17,800 7
Do not give image format
Question 3: Net profit (or loss) expresses the difference between the price that materials or goods (food) were sold for with all associated costs subtracted. This includes the materials costs (e.g. food), labour costs and all other overhead costs (e.g. packaging, power costs, rent, etc.). Express the Total Costs in money($), net profit (NP) in money ($) and as a percentage (%) in the table below. Show the working below the table. Sales $140.55 $175.98 $.268.90 $555.65 $1010.80 Food Costs $40,99 $55.45 $81.38 $120.00 $300.70 Labour Costs $50.50 $61.25 $90.45 $155.98 $240.54 Overheads $23.34 $34.00 $74.88 $111.54 $230.78 Total Costs Net Profit (S) Net Profit as %
Please do not give solution in image format thanku
please answer completely and correctly in text form with all working describe each and every step with explanation computation formula