Question
In: Accounting
Gloria Goh operates a factory that manufactures pastries and related products. One of the major raw...
Gloria Goh operates a factory that manufactures pastries and related products. One of the major raw materials used is wheat, which she buys for $5 per kilogram. The factory operates for 350 days each year. The following information has been provided: Annual usage of wheat 80 000 kilograms Average time between placing and receiving order 4 days Estimated cost of ordering and receiving inventory (per order) $2 Estimated annual cost of carrying a kilogram of maize in stock $0.20 Required: 1 Use the above data to calculate: (a) Economic order quantity (EOQ). (b) Number of orders per year. 2 Gloria has recently heard of just-in-time (JIT) purchasing, and wonders if she should use it in his business. However, he is very concerned that the cost of placing frequent orders will be too high. Explain the advantages of JIT purchasing and address specifically his concerns about cost.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Roland Company operates a small factory in which it manufactures two products: A and B. Production...
Roland Company operates a small factory in which it manufactures
two products: A and B. Production and sales result for last year
were as follow:
A
B
Units sold
8,000
16,000
Selling price per unit
65
52
Variable costs per unit
35
30
Fixed costs per unit
15
15
For purposes of simplicity, the firm allocates total fixed costs
over the total number of units of A and B produced and sold.
The research department has developed a new product...
Tharp Company operates a small factory in which it manufactures two products: C and D. Production...
Tharp Company operates a small factory in which it manufactures
two products: C and D. Production and sales results for last year
were as follows.
C
D
Units sold
8,800
19,000
Selling price per unit
$93
$75
Variable cost per unit
47
39
Fixed cost per unit
20
20
For purposes of simplicity, the firm averages total fixed costs
over the total number of units of C and D produced and sold.
The research department has developed a new
product...
Company X operates a small factory in which it manufactures two products: C and D. Production...
Company X operates a small factory in which it manufactures two
products: C and D. Production and sales results for last year were
as follows:
Item C D
Units sold 9,000 20,000
Selling price per unit 98 75
Variable cost per unit 50 40
Fixed cost per unit 24 24
For purposes of simplicity, the firm averages total fixed costs
over the total number of units produced. The research department
has developed a new product (E) as a replacement for...
Tharp Company operates a small factory in which it manufactures two products: C and D. Production...
Tharp Company operates a small factory in which it manufactures
two products: C and D. Production and sales results for last year
were as follows.
C
D
Units sold
9,000
19,000
Selling price per unit
$97
$75
Variable cost per unit
50
39
Fixed cost per unit
20
20
For purposes of simplicity, the firm averages total fixed costs
over the total number of units of C and D produced and sold.
The research department has developed a new
product...
Tharp Company operates a small factory in which it manufactures two products: C and D. Production...
Tharp Company operates a small factory in which it manufactures
two products: C and D. Production and sales results for last year
were as follows.
C
D
Units sold
9,100
19,600
Selling price per unit
$95
$77
Variable cost per unit
50
41
Fixed cost per unit
22
22
For purposes of simplicity, the firm averages total fixed costs
over the total number of units of C and D produced and sold.
The research department has developed a new
product...
Tharp Company operates a small factory in which it manufactures two products: C and D. Production...
Tharp Company operates a small factory in which it manufactures
two products: C and D. Production and sales results for last year
were as follows.
C
D
Units sold
9,200
19,900
Selling price per unit
$95
$78
Variable cost per unit
49
42
Fixed cost per unit
25
25
For purposes of simplicity, the firm averages total fixed costs
over the total number of units of C and D produced and sold.
The research department has developed a new
product...
Bakker Industries sells three products (Products 611, 613, and 615) that it manufactures in a factory...
Bakker Industries sells three products (Products 611, 613, and
615) that it manufactures in a factory consisting of four
departments (Departments 1 through 4). Both labor and machine times
are applied to the products in each of the four departments.
Neither machines nor labor can be switched from one department to
another.
Bakker’s management is planning its production schedule for the
next several months. There are labor shortages in the community.
Some of the machines will be out of service...
Royal Company manufactures two products, Tables and Seats. Both products are manufactured in a single factory....
Royal Company manufactures two products, Tables and Seats. Both
products are manufactured in a single factory. There is $1,600,000
of factory overhead budgeted for the period. Royal Company plans to
manufacture 1,000 units of each product. Assume tables and seats
both require 10 direct labor hours per unit to manufacture.
Required:
1. Determine the total cost for a table and for the seat.
2. Based on that determine the selling price for the table and
for the seat, when company...
Rustica Ltd. uses one raw material for one of their products. The standard cost per unit...
Rustica Ltd. uses one raw material for one of their products.
The standard cost per unit at the beginning of the year was £28,
made up as follows:
Standard material cost per unit = 7 kg per unit @ £4 per kg =
£28
In the middle of the year, the supplier had changed the
specification of the material slightly due to problems experienced
in the country of origin, so that the standard had to be revised as
follows:
Standard...
Franklin Products Limited manufactures and distributes a number of products to retailers. One of these products,...
Franklin Products Limited manufactures and distributes a number
of products to retailers. One of these products, SuperStick,
requires five kilograms of material D236 in the manufacture of each
unit. The company is now planning raw materials needs for the third
quarter—July, August, and September. Peak sales of SuperStick occur
in the third quarter of each year. To keep production and shipments
moving smoothly, the company has the following inventory
requirements:
The finished goods inventory on hand at the end of...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
- NPV Your division is considering two projects with the following cash flows (in millions): 0...
- The equivalent synchronous impedance of a 25kVA, 400V three-phase Y-connected synchronous generator is 0.05 + j1.6...
ADVERTISEMENT