Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, I need Accounting help please Reorder Point La Cucina Company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes (mortars

Hi, I need Accounting help please

image text in transcribed

Reorder Point La Cucina Company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes (mortars and pesties used in the making of guacamole) and is purchased from external suppliers. Each year, 8,000 pounds of lava stone is used; it is used evenly at the rate of 32 pounds per day. It takes La Cucina 3 days from the time of order to the time of arrival of the order. Required: Calculate the reorder point. pounds Economic Order Quantity La Cucina Company sells kitchen supplies and housewares. Lava stone is used in production of (mortars and pestles used in the making of guacamole) and is purchased from external suppliers. Each year, 8,000 pounds of lava stone is used; it is currently purchased in lots of 500 pounds. It costs La Cucina $5 to place the order, and carrying cost is $2 per pound per year. Required: 1. What is the EOQ for lava stone? 2. How pounds policy? many orders per year for lava stone will La cucina place under the EoQ 3. What is orders per year under the EoQ policy? the total annual ordering cost of lava stone for a year 4. What is total annual carrying cost of lava stone per year under the EoQ policy? the 5. What is the total annual inventory-related cost for lava stone under the Eo

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Does it exceed two pages in length?

Answered: 1 week ago

Question

Does it avoid typos and grammatical errors?

Answered: 1 week ago