Jae's Shoes is considering a change of their current inventory control system for sneakers. The information regarding the neckties is: Demand = 1000 pairs/week; Lead time = 3 weeks; Order cost=$20/order; Holding cost = $10.00/pair/yr; Cycle service level = 95%; Standard deviation of weekly demand = 48; and Number of weeks per year = 52. To calculate the relative frequency use the following values: a) Units Sold and Number of Days b) Number of Days and Standard Deviation of Weekly Demand c) Units Sold and Demand d) Lead Time and Holding Cost

Jae's Shoes is considering a change of their current inventory control system for sneakers. The information regarding the neckties is: Demand = 1000 pairs/week; Lead time = 3 weeks; Order cost=$20/order; Holding cost = $10.00/pair/yr; Cycle service level = 95%; Standard deviation of weekly demand = 48; and Number of weeks per year = 52. To calculate the relative frequency use the following values: a) Units Sold and Number of Days b) Number of Days and Standard Deviation of Weekly Demand c) Units Sold and Demand d) Lead Time and Holding Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 60,500 units per year, an ordering cost of $12 per order, and carrying costs of $1.20 per unit.a. What is the economic ordering quantity?___________Units b. How many orders will be placed during the year? __________Orders c. What will the average inventory be? ____________Units d. What is the total cost of ordering and carrying inventory? $____________
A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?
Please solve the following problems related to Inventory Management 1. A produce distributor uses 3700 packing crates per year. The manager has assigned an annual carrying cost of $8 per crate. Ordering cost is $30. (a) How much is the order quantity based on E0Q mode1? (b) How much is the total cost using E0Q ,mode1?
Assuming that Halton Co. uses the Average Cost method and that retail clothing is not in great demand currently as numerous other products have flooded the market and styles change constantly, the market value for total inventory is 65,000. Is a writedown necessary? How much would need to be written down?
Dream Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Howe anticipates sales of 126,000 units per year, an ordering cost of P4 per order, and carrying costs of P1.008 per unit. The following year, the company learns it can reduce ordering costs to P1 per order but that carrying costs will stay the same at P1.008 per unit. What is the total cost of inventory to be expected?
Fan Base (FB) operates a megastore featuring sports merchandise. It uses an E0Q decision model to make inventory decisions. It is now considering inventory decisions for its Los Angeles Galaxy soccer jerseys product line. This is a highly popular item. Data for 2011 are as follows: Expected annual demand for Galaxy jerseys Ordering cost per purchase order Carrying cost per year Each jersey costs FB $40 and sells for $80. The $7 carrying cost per jersey per year comprises the required return on investment of $4.80 (12% x $40 purchase price) plus $2.20 in relevant insurance, handling, and theft-related costs. The purchasing lead time is 7 days. FB is open 365 days a year. a) Calculate the E0Q. Required 10,000 $200 $7 per jersey b) Calculate the number of orders that will be placed each year. c) Calculate the reorder point.
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9. Now assume the same information: The Beach Bum Surf Co. is evaluating the inventory of its most popular boogie board as the summer season ends. They had beginning inventory of 20 boards at a cost of $25. Then purchases of 130 boards at $27 each, 140 boards at $28 each, and 135 boards at $30 each. If ending inventory is 15 boards and Beach Bum uses FIFO, what would be the dollar amount assigned to cost of goods sold?
10. Now assume the same information: The Beach Bum Surf Co. is evaluating the inventory of its most popular boogie board as the summer season ends. They had beginning inventory of 20 boards at a cost of $25. Then purchases of 130 boards at $27 each, 140 boards at $28 each, and 135 boards at $30 each. If ending inventory is 15 boards and Beach Bum uses the average cost method, what would be the dollar amount assigned to cost of goods sold?
i need D and E be solved only a. Calculate the average aggregate inventory value.=3981000b. Calculate the inventory turnover.=7.66c. The grocery store operates 52 weeks per year. Calculate the weeks of supply.=6.17d. The weekly average inventory listed above cannot change much since the grocery store is limited in storage capacity, and can therefore assumed to remain constant over time. The store has calculated that having less than 3 weeks of supply will create problems keeping stock available for clients. What annual cost of goods sold will bring about this condition (3 weeks of supply)?e. The grocery store is increasingly popular and management has calculated that, on average, the cost of goods sold increase by $5 million per year, reflecting better sales. How many years will it take for the grocery store to require expansion?
A. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Required: 1. Compute the economic order quantity. 2. How many orders would be placed under the EOQ policy? 3. Compute the annual ordering cost for the EOQ. 4. Compute the annual carrying cost for the EOQ. 5. Compute the total inventory-related cost at the EOQ. 6. Previously, the company had been purchasing 5,000 units of product X per order: What is the ordering cost per year under the previous policy? ii. The annual carrying cost? iii. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy? i. B. Kings Company presents the following information: 1. Annual credit sales: P 25,200,000 2. Collection period: 3 months 3. Rate of return: 12% Kings company considers changing its credit term from n/30 to 3/10, 1/30. The following are…
Another way to look at the concept of inventory turnover is by measuring sales per square foot. Taking the average inventory at retail and dividing it by the number of square feet devoted to a particular product will give you average sales per square foot. When you multiply this figure by the inventory turnover rate, you get the annual sales per square foot. It is important to know the amount of sales per square foot your merchandise is producing, both on average and annually. These figures should be tracked monthly and compared with industry standards for businesses of similar size and type. You own a large multi product electronics store in a regional mall. The store has 10,200 square feet of selling space divided into five departments. (a) From the table below, calculate the average and annual sales (in $) per square foot. Then calculate the annual sales (in $) for each department and the total sales (in $) for the entire store. (Round your average and annual sales per square foot…