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

Reviews

Write a Review

Cost Accounting Questions & Answers

  How much is the expected return

If the returns from the 5 periods are known as 10%, 8%, 5%, 7%, 12 & how much is the expected return? The formula using D = P / (r-g) is?

  Library research assignmentassuming that you are the

library research assignmentassuming that you are the controller for a publicly traded company your cfo has asked you

  How can sagebrush have a larger balance of treasury stock

How can Sagebrush have a larger balance of treasury stock than the sum of Common Stock and Paid-in Capital in Excess of Par?

  Determine the potential sales value

Using the average sales value method, determine the potential sales value of 12 one - liter bottles of gin. Calculate average sales value of gin per ounce

  What is the amount of direct materials cost assigned

What is the amount of direct materials cost assigned to ending work-in-process inventory at the end of February?What were the equivalent units for conversion

  Make a job order cost sheet for the 100 widgets

The Talbott Company has received an order (#324) for 100 widgets - Make a job order cost sheet for the 100 widgets

  Characteristics of not-for-profit

Characteristics of not-for-profit and governmental entities

  What is the amount that will be in the account

Earns 10% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years?

  Total financing sources in the amount

When the bonds are issued, the Enterprise Fund will report total financing sources in the amount of

  Accrual concept and revenue recognition and matching

Concepts and conventions used in Accounting. In your explanation, discuss the implications or limitations of these practices when reading Financial statements and Business Entity concept

  Analyze what the number of equivalent units of production

Analyze What The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was

  Calculate total customer response and order receipt time

Calculate the following for this order: total customer response time (CRT); order receipt time; manufacturing lead time (processing time); manufacturing wait time; manufacturing time; and delivery time.

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