The Thornton Company has found that its ordering cost of a raw material is ($ 20) and

Question:

The Thornton Company has found that its ordering cost of a raw material is $\$ 20$ and the carrying cost is $\$ 1$ per average unit of inventory per year. The company uses 10,000 units of raw material per year.

Required:

(1) Determine the optimal order quantity.

(2) Calculate the annual inventory cost of the optimal inventory policy.

(3) How many times should the raw material be ordered in a year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cost Accounting For Managerial Planning Decision Making And Control

ISBN: 9781516551705

6th Edition

Authors: Woody Liao, Andrew Schiff, Stacy Kline

See More Books

Question Posted: May 17, 2024 08:01 AM

See More Questions

Repeat Prob. 38 using singularity functions exclusively (including reactions). Repeat Prob. 38, For the beam shown, find the reactions at the supports and plot the shear-force and bending-moment...
Use the Pythagorean Theorem to find each missing length. a. b. c. Can 4 cm Crm 12 in in 3 in
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
Below are batting averages of the New York Yankees players who were at bat ve times or more in 2006. (a) Construct a frequency distribution. Explain how you chose the number of bins and the bin...
Suppose that a Bayesian spam filter is trained on a set of 1000 spam messages and 400 messages that are not spam. The word "opportunity" appears in 175 spam messages and 20 messages that are not...
Why do auditors insist on sending management letters if managers do not find them useful?
4. Describe the impact of your activities on next quarters inventories
Rush Corporation plans to acquire production equipment for $600,000 that will be depreciated for tax purposes as follows: year 1, $120,000; year 2, $210,000; and in each of years 3 through 5, $90,000...
Spacely Sprockets makes key components for the transportation industry using the process cost system. Below are the cost and production data from the Foundry Department for April. The beginning...
The W \& S Department Store has a requirement for a product line that amounts to 40,000 units per year. The unit purchase cost of the product is $\$ 4$. The manager of the store estimates the cost...
The Polly Company wishes to determine the amount of safety stock that it should maintain for Product $\mathrm{D}$ that will result in the lowest cost. The following information is available:...
Data in the Excel file points per game. xlsx show the number of wins eight teams had during a recent NFL season. Also in this file are the average points each team scored per game during the season....
Mr. A Background Mr. A is a 42-year-old divorced man assessed at intake to a crisis intervention unit. He was brought to the facility by the local law enforcement agency after his father complained...
QUESTION 1 The bank reconciliation statement of Honshu Ltd for February 2020 is set out below: 1) Bank reconciliation statement on 29 February 2020: < DR Balance as per bank statement Add:...
what do you think is the most important thing that adults can do to facilitate physical and motor development? Why?
The Penguin Textile Company sells shirts for men and boys. Results for January 2 0 2 3 are summarized below. Men's Boy's Total Revenue $ 1 7 2 , 8 0 0 $ 7 2 , 0 0 0 $ 2 4 4 , 8 0 0 Variable costs 1 2...
SINGLE, MARRIED FILING SEPERATELY, OR HEAD OF HOUSEHOLD SINGLE, MARRIED FILING SEPERATELY, OR HEAD OF HOUSEHOLD Over $0 $12,500 $50,000 But Not Over $12,500 $50,000 Tax Due Is 4% of taxable income...
Kohl Corporation operates family-oriented department stores that sell moderately priced apparel and housewares. The company reported the following information (adapted) for the three years ending...
What are the three kinds of research types? Explain each type.
Do the two requirements as required completely The DiamondStone Company manufactures touring tires for motorbikes. DiamondStone sells tires for $55 each. DiamondStone is planning for the next year by...
Complete the annuity due for the following. (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount of payment = `8,000 Payment payable = semianually Years = 8...
Tami Tyler opened Tami's Creations, Incorporated, a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain...

The Thornton Company has found that its ordering cost of a raw material is ($ 20) and

Question:

Step by Step Answer:

Cost Accounting For Managerial Planning Decision Making And Control

Students also viewed these Business questions