Solution-Compute what is the cost of carrying inventory

Compute what is the cost of carrying inventory

Assignment Help Cost Accounting

Reference no: EM132740466

Problem 1: Paint Corporation expects to use 48,000 gallons of paint per year costing P12 per gallon. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Paint Corporation holds 2,400 gallons of paint as safety stock. If the company orders 2,000 gallons of paint per order, what is the cost of carrying inventory?

a. P5,760. b. P5,280. C. P8,160. d. P2,400.

Reference no: EM132740466

Questions Cloud

Find what is the depreciation for the second year : Find What is the depreciation for the second year of the machine's useful life, assuming the company uses double-declining balance method of depreciation

What total credits on marigold corp trial balance are : What Total credits on Marigold Corp.'s trial balance are? Marigold Corp.'s trial balance at the end of its first month of operations reported

Will the plan passes the ratio percentage test : Acme Inc. has 200 total employees, Will the plan passes the ratio percentage test? Will the plan passes the average benefits test?

Prepare year-end adjusting journal entries to record : Epstein completed the acquisition, Prepare year-end adjusting journal entries to record amortization expense on the intangibles at December 31, 2021.

Compute what is the cost of carrying inventory : Paint Corporation holds 2,400 gallons of paint as safety stock. If the company orders 2,000 gallons of paint per order, what is the cost of carrying inventory?

Find and determine what effect on profit of accepting order : What will be the effect on profit of accepting the order? Macaron produces a hard disk drive that sells for $172 per unit. The cost of producing 25,000 drives.

Single-payer system the solution to workforce challenges : Is pursuit of a single-payer system the solution to workforce challenges?

Find what will be effect on profit of accepting the order : Management of Macaron has mixed feelings about the order. Direct material $725,000. What will be the effect on profit of accepting the order?

Construction contract and project manual : What are some of the things that you would look for in the construction contract and project manual

User Account

All Pages

Compute what is the cost of carrying inventory

Reference no: EM132740466

Reference no: EM132740466

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT