The required production of Libra Manufacturers for October 2024 is 10 000 units of Product A. Each unit requires two kilograms of materials. The manufacturer desires an inventory of 2 000 kilograms of materials on 31 October 2024 but expects to have an inventory of 1 400 kilograms on 01 October 2024. How many kilograms of materials should be purchased? O A. 20 000 OB. 20 600 O C. 19 400 OD. 10 600

The required production of Libra Manufacturers for October 2024 is 10 000 units of Product A. Each unit requires two kilograms of materials. The manufacturer desires an inventory of 2 000 kilograms of materials on 31 October 2024 but expects to have an inventory of 1 400 kilograms on 01 October 2024. How many kilograms of materials should be purchased? O A. 20 000 OB. 20 600 O C. 19 400 OD. 10 600

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 4CE: Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and...

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A manufacturing company, VMTC PLC, makes the product, blitz. Monthly sales forthe first five months of 2022 have been estimated as: Month UnitsJanuary 210 000February 180 000March 210 000April 220 000May 200 000Additional Information:i. Actual units sold in 2021 November and December were 190 000 and 220 000,respectively.ii. One unit of blitz requires 2 kg of material at $3.50 per kg.iii. One unit of blitz requires half an hour of direct labour at a rate of $12 per hour.iv. Based on past experience, 60% of cash is received in the month of sale, 25% thefollowing month, 10% two months after and 5% is usually irrecoverable.v. Selling price is $18 per unit.vi. The company intends to have finished stock at the end of each month equivalent to15% of the following month’s budgeted sales.…
Please answer Question A,B & C
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following will be total cost in August if the company produces 600 units? Total Cost No.of Units 36,800 37,580 39,400 40,960 42,260 Periods January February 400 415 March 450 April 480 May 505 June 43,820 535 July 44,860 555 Select one: a. 48000 O b. 47200 Oc.53650 O d. 51350
Isabella Company has developed the following standard costs for its product for 2019: ISABELLA COMPANY Standard Cost Card Product A Cost Element Standard Quantity × Standard Price = Standard Cost Direct materials 4 pounds $3 $12 Direct labor 3 hours 8 24 Manufacturing overhead 3 hours 4 12 $48 The company expected to produce 30,000 units of Product A in 2020 and work 90,000 direct labor hours. Actual results for 2020 are as follows: 31,000 units of Product A were produced. Actual direct labor costs were $746,200 for 91,000 direct labor hours worked. Actual direct materials purchased and used during the year cost $346,500 for 126,000 pounds. Actual variable overhead incurred was $155,000 and actual fixed overhead incurred was $205,000. Instructions Compute the following variances showing all computations to support your answers. Indicate whether the variances are favorable or unfavorable. (a) Materials quantity variance. (b) Total direct labor variance. (c) Direct labor…
Question 1: Pretexpo is a Turkish manufacturing company and produces fabrics for the 2021 Textiles Trade show which will be held in Belgium. Fabrics are demanded for the show as 100 units per day. Fixed cost for production of fabric is $60 and total material and labor cost per unit fabric is $20, storage and handling costs are $15 per unit per year. Suppose there are 300 working days one year. a) Determine the optimal order quantity. b) What is the time between placement of orders? c) What is the average annual cost of holding and setup due to this product? d) If replenishment lead time is three months, determine the reorder level based on the on-hand inventory. e) If replenishment lead time is four days, determine the reorder level based on the on-hand inventory. f) Draw a graph of the amount of inventory over time. Indicate R value and show order placement and order arrival times. Using your graph determine the average amount of inventory. Determine the optimal order quantity.
AKS Limited makes and sells three different motor parts: AKS001, AKS002 and AKS003. The total forecast sales and production volume for the three motor parts for 2021 are 15 000 units. Expected sales volumes for each model are shown in the following table.Sales and production figures AKS001 AKS002 AKS003 Sales and Production Volume 10 000 3 000 2 000 Direct costs of production Prime costs are the direct materials and direct labour for each product. The estimated prime costs for the three products are shown in the following table. Prime Cost Element AKS001 AKS002 AKS003 Direct materials per unit $55.00 $85.00 $105.00 Direct Labour per unit $40.00 $30.00 $25.00 Total prime cost per unit $95.00 $115.00 $130.00 Overheads Indirect manufacturing costs are budgeted to be $810 000. These are currently allocated across the three product lines based on direct labour-hours (DLHs), as shown in the following table. Cost driver…
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following will be total cost in August if the company produces 600 units? Periods Total Cost No.of Units January February 36,800 400 37,580 415 March 39,400 450 April May 40,960 480 42,260 505 June 43,820 535 July 44,860 555 Select one: O a. 51350 O b. 48000 O c. 53650 O d. 47200 - here to search 3 4 56 6 1 8A9 4 0
Suppose that a manufacturer plans to produce 78,000 units of product duringa year. A lot of size L, to be determined, is to be made periodically, andevery time a lot is made, it is necessary to set up the appropriate machineryand other production facilities before production starts. The set up cost is thena fixed cost incurred for each lot produced and it is determined as $ 200. Whenproduction commences , the cost of making a unit is constant at $ 7.5 per unit.Inventory cost is to be determined on the basis that it costs $ 0.50 per year tocarry one unit in inventory. Also find how many lots the manufacturerwould make per year and each lot would be produced in how manydays ?.
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following is the cost equation? Periods Total Cost No.of Units January February 23,000 200 24,550 230 March 25,800 260 April 27,650 300 May 29,280 340 June 30,300 360 July 31,550 390 Select one: O a. Y=14000+45*X O b. Y=19000+25*X O CY=15000+55*X O d. Y=12500+-40*X
23. The solution in a simplified way
Total cost and number of units in the first seven months of 2020 are given below. According to this information, which of the following will be total cost in August if the company produces 700 units? Periods Total Cost No.of Units January 45,750 500 February 46,305 510 March 46,860 520 48,248 545 April May June 49,358 565 50,190 580 July 51,855 610 Select one: O a. 61,150 O b. 59,330 Oc.56,850 O d. 58,650
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