Reference no: EM132890488
Question 1 - WZY processing company uses 2,400 units of a product per year on a continuous basis. The product carrying costs are RM60 per year and ordering costs are RM252.05 per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory.
(a) Calculate the economic order quantity.
(b) Calculate the total cost per year to order and carry this item.
(c) If WZY company increases its order quantity by 58 units it will get a discount.
i) Calculate the total cost at new level
ii) How much is the discount that the supplier will offer WZY company to result in a net benefit to the company.
Question 2 - During March 2019, Annapolis Corporation recorded $42,400 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $42,700 would be incurred, and 4,500 direct labor hours would be worked. During March, 6,250 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied.
On May 21, 2019, Christine worked 6.0 hours on Job A-1, and 3 hours on general "overhead activities." Christine is paid $14 per hour. Overhead is applied based on $20 per direct labor hour. Additionally, on May 21 Job A-1 requisitioned and entered into production $170 of direct material. On May 21, Christine, while working on Job A-1 used $27 of indirect material. Indirect material is included in the overhead application rate. Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on May 21?
On March 1, 2019, Baltimore Company's beginning work in process inventory had 5,000 units. This is its only production department. Beginning WIP units were 50% complete to conversion costs. Baltimore introduces direct materials at the beginning of the production process. During March, a total of 28,200 units were started and the ending WIP inventory had 7,000 units which were 60% complete to conversion costs. Baltimore uses the weighted average method. Use this information to determine for March 2019 the equivalent units of production for conversion costs. (Round answer to the nearest whole number of units)
Calculation of equivalent units of production for conversion costs?
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