Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 25 2.5 pts ABC Company electroplates a part for automobiles in lots of 300 units. Annual demand for this electroplated part is 4,000 units.

image text in transcribedimage text in transcribed

Question 25 2.5 pts ABC Company electroplates a part for automobiles in lots of 300 units. Annual demand for this electroplated part is 4,000 units. ABC Company buys its raw material (i.e., the part to be electroplated) in lot size of 400 units from its supplier. The unit cost of the raw material component) purchased by ABC Company is $100. The transit lead time to get the required component from its supplier is 4 weeks. The value added in manufacturing (i.e., by electroplating) each part is $200. This results in the total value of an electroplated unit to be $300. The production lead time to electroplate a part is 3 weeks. Assume 50 working weeks per year. Which one of the following is closest to the value of the average cycle inventory of these electroplated parts? O $30,000 O $45,000 $40,000 O $60,000 ABC Company electroplates a part for automobiles in lots of 300 units. Annual demand for this electroplated part is 4,000 units. ABC Company buys its raw material (i.e., the part to be electroplated) in lot size of 400 units from its supplier. The unit cost of the raw material (component) purchased by ABC Company is $100. The transit lead time to get the required component from its supplier is 4 weeks. The value added in manufacturing (i.e., by electroplating) each part is $200. This results in the total value of an electroplated unit to be $300. The production lead time to electroplate a part is 3 weeks. Assume 50 working weeks per year. Which one of the following is closest to the value of the average work-in-progress pipeline inventory during electroplating? $72,000 O $64,000 $48,000 $96,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.

9th Canadian Edition, Volume 2

470964731, 978-0470964736, 978-0470161012

Students also viewed these Accounting questions