Company sells kitchen supplies and housewares

Assignment Help Financial Accounting

Reference no: EM131287201

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, 8,000 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. What is the EOQ for lava stone? (pounds)

2. How many orders per year for lava stone will La Cucina place under the EOQ policy? (orders per year)

3. What is the total annual ordering cost of lava stone for a year under the EOQ policy?

4. What is the total annual carrying cost of lava stone per year under the EOQ policy?

5. What is the total annual inventory-related cost for lava stone under the EOQ?

Reference no: EM131287201

Questions Cloud

Why is topic important to health information systems quality : Why is this topic important to health information systems quality? What is the issue or quality identified? What improvements are needed? What features are identified? How does this impact patient care?

Nature of uncollectible accounts : Nature of Uncollectible Accounts The XYZ Corporation owns and operates casinos. As of a recent year, The XYZ Corporation reported accounts receivable of $715,000 and allowance for doubtful accounts of $99,385. Compute the percentage of the allowance ..

Explain effective approaches to the broad spectrum : Explain effective approaches to the broad spectrum of employee relations, including career development, fostering ethical behavior, discipline, labor relations, and dismissals.Use technology and information resources to research issues in human re..

How dell has revolutionized computer sales and delivery : Describe how Dell has revolutionized computer sales and delivery. Is there any indication that Dell has partnered with other companies to sell peripheral equipment like printers or scanners?

Company sells kitchen supplies and housewares : 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. What is the EOQ for lava stone? (pounds). How many..

How does an individual firm like wal mart : How does an individual firm like Wal-Mart "manage" a supply chain, particularly considering that supply chains include multiple firms with potentially conflicting objectives?

Describe in words what the solution sets mean : Show the solution sets written algebraically and as a union or intersection of intervals. Describe in words what the solution sets mean, and then display a simple line graph for each solution set.

Build a model using r or python software : Build a model Using R or Python software by applying Dirichlet mixture model for detecting spammers in Instagram dataset - How to collect the data, you want to search from the Internet or you want to collect it by yourself.

Learned about the value of information : Using what you have learned about the value of information and how it is able to be converted into a meaningful and useful context, review the case study on page 90 of the Baltzan text, "Political Microtargeting: What Data Crunchers Did for Obama"..

User Account

All Pages