a. Find the EPQ(Economic Production Quantity) A. How long does it take to produce the batch? B. How many batches will be produced per year?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Answer all subparts a to f.if answered within 30mins,it would be helpful
Accounting
ETS manufactures a component for its computer products. The annual demand for this
component is 2500 units. The annual cost of maintaining inventory is
10% per unit and the cost of preparing an order and setting up production
for the order is $ 50.
The machine used to make this part has a production rate of 10,000
units per year and the cost is $ 22 per unit.
a. Find the EPQ(Economic Production Quantity)
A. How long does it take to produce the batch?
B. How many batches will be produced per year?
C. What is the maximum inventory level?
D. What is the total cost per year?
E. A supplier offers to sell a similar component for $ 25 per unit with a charge
$ 5 per service per order. Should the company accept the offer?
F. Find the average inventory level for each situation
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