Use the information provided to answer the questions. 1.1 Calculate the annual economic order quantity from the information provided below. INFORMATION GM Electronics expects to sell 800 alarm systems each month of 2022 at R4 000 each. The cost price of each alarm system is R2 000. The inventory holding cost of an alarm system is 1% of the unit cost price. The cost of placing an order for the alarm systems is estimated at R60.

Use the information provided to answer the questions. 1.1 Calculate the annual economic order quantity from the information provided below. INFORMATION GM Electronics expects to sell 800 alarm systems each month of 2022 at R4 000 each. The cost price of each alarm system is R2 000. The inventory holding cost of an alarm system is 1% of the unit cost price. The cost of placing an order for the alarm systems is estimated at R60.

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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Q1// A company estimates that it will sell 12000 units of its product for the forthcoming year. the ordering cost is 100 $ per order and the carrying cost per year is 20% of the purchase price per unit. The purchase price per unit is 50$. Find: Economic Order Quantity, No. of orders/year and time between successive order.
1.5 Calculate the annual economic order quantity (EOQ) from the information provided below. INFORMATION Sasco Traders expects to sell approximately 1 000 boxes of cereal per month during 2022. The cost of placing an order for cereal is estimated to be R25 and the unit purchase price is R24. The inventory holding cost is 10% of the unit purchase price.
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £ 500Required:(i) Calculate the EOQ
Mix Electronics purchases 2,400,000 units per year of a component with a purchase price of P50. The fixed cost is P15 per order, and the carrying cost is 30% of the purchase price.a. Calculate the EOQ.b. Calculate the EOQ if the order cost is zero. c. Calculate the EOQ if the order cost is P10 per order.d. What is the implication to the firm if there is a decrease in the order cost?
2.2 Use the information provided below to calculate the following: INFORMATION Monthly sales of West Ham Limited is 4 400 units at R150 a unit. The purchase price is R90 per unit. The carrying cost amounts to 10% of the purchase price and the ordering cost is R62 per order. INFORMATION Monthly sales of West Ham Limited is 4 400 units at R150 a unit. The purchase price is R90 per unit. The carrying cost amounts to 10% of the purchase price and the ordering cost is R62 per order. 2.2.1 Calculate the Economic order quantity (EOQ) 2.2.2 Calculate the Number of orders that need to be placed for the year
C E H The ABC Semi Conductor Company purchase 40,000 units of mother board each year at a cost of $30.00 per unit. The ordering cost is $10.00 per order, and the annual holding cost is estimated at 15% of the unit value. 1. What is the EOQ for the ABC? 2. What is the total annual inventory cost for the mother board if it is ordered in economic quantities? 3. How many orders should be placed each year? D Demand 40000 units H Holding Cost S Ordering Cost 4.5 $/unit/yr 10 $/order Case 1 Case 2 Case 3 Case 4 Case 5 Case 6 Case 7 Quantity Average Total Holding Cost Total Ordering Cost Total COST = 100 200 300 400 500 1000 2000
4. 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. Note: Kindly input your answer with comma. Example: 10,000 Required: a. Compute the economic order quantity. b. How many orders would be placed under the EOQ policy? c. Compute the annual ordering cost for the EOQ. d. Compute the annual carrying cost for the EOQ. e. Compute the total inventory-related cost at the EOQ.
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £ 500Required: (iii) Calculate the total annual ordering cost
Currumbin Ltd sells a product for which they have a target profit of $30000. This product has variable costs of $4 per unit and total fixed costs of $45000. If 15000 units are to be sold, what should be the selling price? a. $2 b. $5 c. $3 d. $9 Arnold Company Pty Ltd provided these estimates for the three months ending 30 June 2020, its first period of operation. The beginning cash balance is $1,000. Cash receipts from sales $300 000 Cash payments for expenses 130 000 Payment for the purchase of new motor vehicle 15 000 Depreciation of motor vehicle 15 000 Repayment of a loan 100 000 What is the estimated cash balance at 30 June 2010? a. $55000 deficit b. $40000 surplus c. $56000 surplus d. $155000 surplus e. $50000 surplus Park Ltd produces financial calculators. The production capacity is 35,000 calculators, and the company is currently operating at 80% capacity. Variable…
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1 Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Palmer can order the ink at a cost of $2 per gallon plus fixed ordering costs of $100 per order. The firm's carrying cost is 20 percent of the inventory value, at cost. What is the EOQ? * 21,456 13,563 26,833 43,987 30,040
A company is presently ordering on the basis of an EOQ. The demand is 10,000units a year, unit cost is $10, ordering cost is $30, and the cost of carrying inventoryis 20%. The supplier offers a discount of 3% on orders of 1000 units or more. Whatwill be the saving (loss) of accepting the discount?