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Hi, I need Accounting help please safety stock and the Reorder point with safety La Cucina company sells kitchen supplies and housewares. Lava stone is
Hi, I need Accounting help please
safety stock and the Reorder point with safety La Cucina company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes and pestles used in the making of guacamole) and is purchased from external suppliers. Each year, 8,000 pounds of lava stone i it is used evenly at the rate of 32 pounds per day. However, some days as many as 33 pounds are used. It takes La Cucina 4 days from the time of order to the time of arrival of the order. Required: Calculate the amount of safety stock. (Round answer to the nearest whole number.) pounds 2. Calculate the reorder point with safety stock. pounds ordering cost, Carrying cost, and Total Inventory Related Cost La Cucina company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes (mortars and pestles used in the making of guacamole) and is purchased from external suppliers. Each year, 8,500 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. How many orders for lava stone does La cucina place per year? Round your answer to the nearest whole amount. orders per year 2. What is the total ordering cost of lava stone per year? 3. What is the total carrying cost of lava stone per year? 4. What is the total cost of La Cucina's inventory policy for lava stone per year
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