Solution-Calculate duration of having positive inventory

Calculate duration of having positive inventory

Assignment Help Accounting Basics

Reference no: EM132861741

Question - SaskAlloy purchases a certain type of catalyst for its forging operations. Demand for this catalyst is estimated to be 5000 kilogram per year, and the cost of purchasing each kilogram of the product is $13.5.

SaskAlloy uses a computerized inventory management system; so, the overhead cost of placing an order is low, and estimated to be $150. However, due to space limitations, SaskAlloy has calculated the rate of holdingone kilogram of the product to be 30% per year.

Due to the importance of the catalyst to the healthy operation of SaskAlloy's production line, cost of shortage is deemed to be quite high and is estimated to be $500 per kilogram. Calculate duration of having positive inventory in each period.

Reference no: EM132861741

Questions Cloud

Compute the carrying amount of biological assets at year-end : A herd of ten 2-year old animals was held at January 1 of the current year. Compute the carrying amount of biological assets at year-end

The role of market reasearch : Market research provides relevant data to help solve marketing challenges that a business will most likely face integral part of the business planning process

Case study for strategic management : Analyze the effect of Google's decision to restructure itself under a new holding after 2015.

What are implications of skipping or condensing tasks : Are there aspects of the project that can be condensed or skipped? What are the implications of skipping or condensing tasks?

Calculate duration of having positive inventory : Demand for this catalyst is estimated to be 5000 kilogram per year, Calculate duration of having positive inventory in each period

Possible risks of not implementing change : What are the possible risks of not implementing the change you identified? Is there an urgency to implement this change?

Prepare the journal entries for abbot corporation : Abbot has a December 31 year-end and will repay the note with three equal yearly payments of $90,000. Prepare the journal entries for Abbot Corporation

Provides warehousing and distribution services : Imagine that you are employed as a compensation specialist by an organization that provides warehousing and distribution services across the United States.

Calculate the inventory annual carrying cost : Calculate the inventory annual carrying cost percentage for the ABC Company, given the following annual information: Obsolescence is $80,000

User Account

All Pages

Calculate duration of having positive inventory

Reference no: EM132861741

Reference no: EM132861741

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT