JIT and cost control Buskin Bolts, Inc. produces 50,000 units each day and the average number of units in work in process is 200,000. The average annual inventory carrying cost percentage is 20% and the average work in process is $1,000,000. Required: 1. Determine the throughput time. 2. Compute the annual carrying costs. 3. If the same daily output can be achieved while reducing the work in process by 75%, determine the new throughput time. 4. What has happened to the velocity of production in part 3? 5. Compute the annual carrying costs for part 3.

2. Calculate and show your computations for the following:

a. The materials inventory balance as of April 30.

b. Thecost of materials used in production during April.