Calculate the inventory reorder point in tonnes

Assignment Help Accounting Basics
Reference no: EM133079974

Question - Docklands Furniture Factory produces products made of wood to local retail shops in Melbourne. An annual requirement for wood is 200,000 tonnes. The price of wood fluctuates and the average estimated price for 2017 is $5000 per tonne. It costs $0.25 to store one tonne for a year. It costs $200 to place and receive one order. The company is closed for two weeks during annual holidays. Required: 1. Calculate the company's EOQ? 2. Compute the total annual: (a) number of orders, (b) ordering costs and (c) carrying costs. 3. Assume the lead time for an order is two week. Demand constantly fluctuates and the maximum weekly demand is 4,100 tonnes. Calculate the inventory reorder point in tonnes.

Reference no: EM133079974

Questions Cloud

What would be the residual income resulting from the upgrade : If the company has a minimum required return on investment of 8.0%, what would be the residual income resulting from the upgrade
Adolescents will behave in violent manner : Does playing violent video games increase the probability that children and adolescents will behave in a violent manner
Intended reasons and actual consequences of policies : Explain the intended reasons and actual consequences of these policies. Identify and explain at least one alternative policy that would lead to better socio-eco
Formulate the 0-1 integer programming model for the problem : Budi is an employee. He has a bank savings of Rp. 500,000,000, and he intends to stop working and use half of his bank savings to open a restaurant.
Calculate the inventory reorder point in tonnes : Demand constantly fluctuates and the maximum weekly demand is 4,100 tonnes. Calculate the inventory reorder point in tonnes
Economic development of the philippines : What are your thoughts about the supply chain crisis, and does it matter to the economic development of the Philippines?
Effective communication : We all live in cities and towns with crimes committed by juveniles, some more than others. Discuss the effectiveness of these programs.
Assess the potential of profitably entering malaysian market : Fiza Coffee Sdn Bhd (FCSB) has hired you as an economic consultant to assess the potential of profitably entering the Malaysian market for gourmet coffee. FCSB
Did the documentary change or affirm your views : Review your answers on the anticipation guide: Did the documentary change or affirm your views about these topics? How so?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the value of intangible assets

Replacement cost as per the current market value for the tangible assets is $5,800 million. Calculate the value of intangible assets using all the 3 methods

  What is the purpose and important of statement of cash flows

In no less than two hundred words What is the purpose and important of the Statement of Cash Flows

  What is stakeholder theory

What is stakeholder theory and how does this approach differ to other approaches to the social responsibility of business

  What is amy basis in the land

Accounts receivable (fair market value of $200,000 and basis of $0) What is Amy's basis in the land? What is Amy's basis in the accounts receivable

  Production responsibility for flexible-budget variances

Production Responsibility for Flexible-Budget Variances Suppose a plant manager planned to produce 100 units of product at a total cost of $1,000.

  Create the community roads with permeable concrete

Create the community roads with permeable concrete that will absorb and collect annual rainfall to essentially aide in the communities recycling efforts

  Calculate the times interest earned

Compute the following ratios for 2011- Earnings per share and Times interest earned

  Why will the traditional lifo inventory costing method

Why will the traditional LIFO inventory costing method and the dollar-value LIFO inventory costing method produce different inventory valuations if the composition of the inventory base changes?

  How much was retained earnings

How much was retained earnings? ABC Inc. reported the following amounts on its statement of financial position at December 31, 2020

  Prepare an accrual-basis income statement

The repair shop equipment was purchased on November 1 and has an estimated useful life of 4 years. Lease payments to the landlord are made at the beginning.

  Wilson co purchased land as a factory site for 600000

wilson co. purchased land as a factory site for 600000. wilson paid 60000 to tear down two buildings on the land.

  Prepare the journal entries to record disposal of warehouse

On 1 January 2019, The warehouse was sold on 30 June 2020 for $180,000. Prepare the journal entries to record the disposal of the warehouse.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd