Given the following information: Annual sales in units 40,000 Cost of placing an order $58.00 Per-unit carrying costs $2.30 Existing units of safety stock 600 What is the EOQ? Round your answer to the nearest whole number. units What is the average inventory based on the EOQ and the existing safety stock? Use the rounded value of the EOQ from the previous question in your calculations. Round your answer to the nearest whole number. units What is the maximum level of inventory? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. units How many orders are placed each year? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. orders per year

Given the following information: Annual sales in units 40,000 Cost of placing an order $58.00 Per-unit carrying costs $2.30 Existing units of safety stock 600 What is the EOQ? Round your answer to the nearest whole number. units What is the average inventory based on the EOQ and the existing safety stock? Use the rounded value of the EOQ from the previous question in your calculations. Round your answer to the nearest whole number. units What is the maximum level of inventory? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. units How many orders are placed each year? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. orders per year

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 1PA: When prices are rising (inflation), which costing method would produce the highest value for gross...

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Given the following informations annual sales in units 30,000 cost of placing an order $60,00 per unit carrying costs $ 1.50 Existing units of safety stock 300 a what is the EOQ? b. what is the average inventory based on the EOQ and the existing safety stock c. what is the maximum level of inventory? d. how many orders are placed each year?
A) Calculate Economic Ordering Quantity ( EOQ ) if cost of carrying 1 unit in inventory = $24 total demand in units over planning period = 60,000 units ordering cost per order = $800 Common Stock A Common Stock B Probability Return Probability Return .30 11% .20 25% .40 15% .30 6% .30 19% .30 14% .20 22%
Requirement 1. Calculate the EOQ. Begin by selecting the formula used to calculate EOQ. (D=Demand in units for one year, P=Ordering cost per purchase order, C=Carrying cost of one unit in stock, Q=Any order quantity.) ModifyingAbove EOQ equals StartRoot StartFraction 2 DP Over Upper C EndFraction EndRoot With Subscript EOQ=2DPC Part 2 (Round your answer to the nearest whole number.) The EOQ is 560 jerseys. Part 3 Requirement 2. Calculate the number of orders that will be placed each year. Determine the formula used to calculate the number of orders that will be placed each year, then calculate the orders per year. (Round your answer up to the nearest whole number.) ÷ = Number of orders
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 unitsAnnual cost of Holding £1.50Annual cost of placing an order £ 500 1. Calculate the EOQ 2. Calculate the average inventory 3. Calculate the total annual ordering cost 4. Calculate the total annual inventory cost (excluding the purchase cost)
ACTIVITY 3- ACCOUNTING FOR MATERIALS 1. Krissy operates its factory 300 days per year. Its annual used of Material Y is 300,000 gallons. It carries a 2,500 gallon safety stock of material and its lead time is 3 business days. What is the order point for Material Y? 2. The EOQ for Material is 7,500 gallons, and the carrying cost per gallon per year is P.25. What is the total annual carrying cost for Material? 3. Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500 kilos, and its order point is 1,500 kilos. What is the lead time, assuming daily usage is 50 kilos? 4. Peter's order quantity for tocino is 5,000 kilos. Peter maintains a safety stock of Tocino at 500 kilos, and its order point is 1,500 kilos. What would be the total annual carrying costs, assuming the carrying cost per unit is P.80 5. The following are data of materials inventory for the year 2020 of Mars Corp: Number of pounds required annually Cost of placing an order Annual…
b) Wansam Ltd extracted the following from its records: Monthly demands of Ba Carrying cost per unit Cost of placing an order Minimum usage Maximum usage Re-order period You are required to calculate: Reorder Quantity 2,000units GHC 500 GHC 4,000 50 units per week 150 units per week 5-7 weeks i. ii. Reorder level iii. Minimum Stock level iv. Maximum Stock level V. Average Stock level
Assume that Demand (D) = 10,000 units and Ordering Cost (S) = $10 (per order). Suppose that we order at the Economic Order Quantity (EOQ) and the total inventory cost TC $500. What is the EOQ?
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £ 500 Required:(i) Calculate the EOQ (ii) Calculate the average inventory (iii) Calculate the total annual ordering cost (iv) Calculate the total annual inventory cost (excluding the purchase cost)
An organization implements a constant order quantity inventory system. The setup (procurement) cost per transaction: $58 The annual demand in units: 2500 The cost of each inventory unit: $10 The annual holding cost as a percentage of unit inventory cost: 30% Determine the optimal order quantity rounded to the nearest whole unit.
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50Annual cost of placing an order £500 Required: (i) Calculate the EOQ (ii) Calculate the average inventory (iii) Calculate the total annual ordering cos (iv) Calculate the total annual inventory cost (excluding the purchase cost)
In a single period inventory model, we need to decide between stocking 5 units versus 6 units. The probability of demand being 5 or less is 0.6. The cost of each unit is 29 dollars, selling price is 66 dollars, and salvage price is 10 dollars. What is the expected value of the benefit of ordering that extra unit after 5? (Provide one decimal place)
You are asked to manage the purchases of potatoes (10 kgs per bag). The annual demand = 1200 bags, Deliveredpurchase cost = 30/bags, Annual carrying cost percentage= 10percent, Order cost = 50/order. The lead time is 5 working days. Assuming 24 working days per month. 5.1 Determine the Economic Order Quantity 5.2 Determine the reorder point 5.3 Determine the average inventory5.4 Suppose orders are placed only at review time. Find the optimal period and the optimal orderquantity.