Grace Corp has an expected annual usage of 7,800,000 units of materials. The standard order size is 65,000 units. The supplier cost each unit at P150., and to place one order is P90. What is the estimated annual order cost ?
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- Yanks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units produced in a month is 200, what would be the total cost?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?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
- 1. The ACE company estimates its annual requirement requirement is 78,000 units at a price of 4 per unit. The carrying cost at 15% and its ordering cost at 90 per order. Compute the following:a) What is the most economical no. of units to order?b) No. of orders to be placed in a year.c) About how often will an order need to be placed?clarks Ltd uses the following cost function: Y = $7000 + $8.50X. If the number of units produced in a month is 200, what would be the total cost? a) $7,170 b) $7008.50 c) $8,700 d) $7,800The 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
- 11.Esmeralda Company's annual material requirement used in a production is 144,000 units. This material costs P200 per unit from a supplier and it requires 5 days lead time from date of order to date of delivery. The ordering cost is P150 per order and the carrying costs is 5% of inventory investment per unit. What is the Economic Order Quantity? 12.Determine the total number of orders in a year. *Rainbow Inc's products are given below. If the company's total labor capacity is 3200 hours/week, which of the products should be produced in a week? Regarding with this plan what will be the total sales and total variable costs of the firm per week? Labor Total Hour Price VC / Demand Product / Unit / Unit Unit (unit) ХС610 2 2,500 1,000 300 XD740 4 3,100 1,500 250 ZS650 3 1,850 750 400 ST340 2,250 975 500Let's say that ABC company manufactures and sells 20,000 units of its product yearly. A single product includes these costs: Direct materials: $3 per unit Direct labor: $5 per unit Variable manufacturing overhead: $2 per unit Fixed manufacturing overhead: $35,000 per year, which computes to a $1.75 per unit cost ($35,000/20,000 annual units) Can you explain what the per unit cost of the product would be under the Absorption and Variable costing methods?
- BBB Company has total fixed costs of $112,500 if 15,000 units are produced. The relevant range is 8,000 unitsto 30,000 units. If 25,000 units are produced, fixed costs are ?2. Find out the EOQ, Annual ordering cost and annual holding cost from the following information. The demand is 19500 units per year, holding cost is RO 4 per unit for a year and ordering cost is RO 25 order. 3. Find out the ordering cost from the following information, Annual demand is 240 units, holding cost RO 4 per unit for a year and EOQ is 60 units. 4. If the price of the material is RO 15 per unit and the annual consumption is 4000 units, the interest and store keeping charges are 20% of the value and the cost of placing of an order and receiving the goods is RO 60, how much material should be ordered at one time? 5. Alexander pump LLC uses about 75000 valves per year and the usage is fairly constant at 6250 units per month. The valve cost of RO 1.50 per unit when bought in large quantities, and the carrying cost is estimated to be 20% of average inventory investment on an annual basis. The cost to place an order and process the delivery is RO18. It takes 45 days to receive…Economic order quantity. J and L. Sloan Company estimates the demand for its CQ10 bearings at 50,000 units a year. the bearings cost $6 each. ordering cost is $90 per order and carrying cost is 24 percent of product cost. Required: a) compute the economic order quantity b) how many orders a year will the company place if it orders the economic order quantity?