please answer both parts within 30 minutes. 9.A particular raw material is available to a company at three different prices, depending on the size of the order:Less than 100 pounds100 pounds to 999 pounds1,000 pounds or more$20 per pound$19 per pound$18 per poundThe cost to place an order is $40. Annual demand is 3,000 units. The holding (or carrying) cost is 25 percent of the material price.9a. What is the EOQ?96. What is the reorder point?

Q 9a. EOQ is the economic order quantity. It is the order size for which total of ordering cost and…

Answered: A particular raw material is available…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter23: Other Topics In Working Capital Management

Section: Chapter Questions

Problem 6MC

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Question 4: Compute the EOQ given the following information. The annual consumption is 6000 units, ordering cost is RO 60 per order and carrying cost is 20% of the price. The supplier quotes the following prices for the component. No of units bought at time Price per unit Less then 1000 OMR 10 1000 to 2999 OMR 9.5 3000 and above OMR 9 What is the optimal order quantity?
2. MGS a manufacturing company placed an order of 24,000 units semiannually at a price of 20 per unit. Its carrying cost is 15% and the order cost is 12 per order. Compute the following:a) What is the most economical order quantity?b) How many orders need to be placed?
A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 pounds 100 pounds to 999 pounds 1,000 pounds or more $20 per pound $ 19 per pound $ 18 per pound The cost to place an order is $40. Annual demand is 3,000 units. Holding (or carrying) cost is 25 percent of the material price. What is the economic order quantity to buy each time, and its total cost? Economic order pounds quantity Total cost %24
5. Expected annual Usage of materials is 2,000,000 units, and per order quantity is 10,000 units. The invoice cost of each unit is Rs.500, and the cost to place on purchase order is Rs.80. Total Cost: А. 8million В. 16million С. zero D. None of the above 6. Based on the information in (5), the estimated annual order cost is: А. Rs.16,000 В. Rs.100,000 Rs.32,000 С. D. Rs.50,000
5. Calculate the direct material from the following information: Direct expenses RO 90,000, Direct labor RO 20,000, manufacturing overheads RO 30,000 and prime cost RO 170,000. a.RO 21,000 b.RO18,000 c.RO 60,000 d.RO 20,000 6. Which of the following are used for calculating economic order frequency? i. Total annual consumption ii. No of order per year iii. Buying cost per order iv. 365 days a.i and ii b.ii and iv c.iii and iv d.i and iv
Company D is planning to perform an ABC analysis for its products. An information table is given below. Item Annual Demand Unit Cost 180 $100 130 $140 C 600 $220 D. 60 $70 50 $80 Assuming that class A items represent about 75% of the total dollar usage, class B about 20%, class C less than 5%, what is the annual dollar volume of Item D? a. 132000 b. 4200 C. 18200 d. 4000 e. 18000
5. Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.90 Actual quantity purchased and used in production 100 Standard quantity for units produced 90 Actual labor rate per hour $15 Standard labor rate per hour $14 Actual hours 200 Standard hours for units produced 190 NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. Complete the following table of variances and their conditions: Variance Variance Amount Favorable (F) or Unfavorable (U) Material Price ? ? Material Quantity ? ? Total DM Cost Variance ? ? Labor Rate ? ? Labor Efficiency ? ? Total DL Cost Variance ? ?
The quarterly demand for an item of raw materials is estimated at 2,000 units at a purchase price of GH¢180 per unit. It is estimated that the cost per order will be GH¢270 and the cost of holding a unit of material in inventory will be GH¢24.Required:i. Compute the optimal order quantity, and total minimum costs.ii. Suppose a supplier offers 5% quantity discount for purchase of 8,000 units, should the offer be accepted
Annual production of Product X is 400,000 annually. Each unit of Product X requires 2.5 units of material J. Product X is sold for 500 per unit and its total manufacturing cost is 300. Material J is purchased at 60 per unit. Carrying cost per unit of material J is 1 per unit while the ordering cost is 500 per order. How any units of material j shall the company order each time to minimize total relevant cost of inventories? a. 31,623 b. 20,000 c. 30,263 d. 26,336 e. None of these
if the holding cost of an item is $0.15 per unit per day, the ordering cost is $200 per order, the purchasing cost per unit is $12 for any quantity less than 500 units, and $11 otherwise. The daily demand is 80 units. Find the economic order quantity?
3. Acme Inc. has the following information available: Actual price paid for material $1.00 Standard price for material $0.90 Actual quanity purchased and used in production 100 Standard quantity for units produced 110 Actual labor rate per hour $15 Standard labor rate per hour $14 Actual hours 200 Standard hours for units produced 220 NOTE: All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). For the variance conditions, your answer is either "F” (for Favorable) or "U” (for Unfavorable) - capital letter and no quotes. Complete the following table of variances and their conditions: Complete the following table of variances…
1. Annual Demand is 450 units. The cost to place an order is $80 and holding cost is 25% per year of the cost of the item. The supplier has just submitted the following cost schedule to you. Quantity Price EOQ Feasible? 1 to 50 $60 51-100 $54 Over 100 $51 a) Calculate the EOQ for each Price. Determine which are feasible. Fill in above. ( b) Is the EOQ for the lowest unit price feasible? If not, compare total cost at all break quantities larger than the feasible EOQ. c) What decision would you make?

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