Determine the firm total cost based upon the calculated eoq

Assignment Help Accounting Basics
Reference no: EM133183799

Question - Meriah Plastics Sdn Bhd annual sales are 42,000 units. The cost of placing an order is RM54 per order and it estimates that 14 days are needed to receive an order once placed. Meriah Plastics Sdn Bhd offers at lowest price, which is RM6.50 per unit. The firm's carrying costs associated with this item are RM0.30 per unit per month. The order should be placed in multiple of 10 units. Meriah Plastics Sdn Bhd decided to maintain a safety stock of the item equal to five days of usage. (Assume a 365-day year).

Required -

a) Calculate the firm's economic order quantity (EOQ) for the item of inventory.

b) Determine the firm's total cost based upon the calculated EOQ.

c) Calculate the approximate level of safety stock should the firm hold.

d) Determine the firm's reorder point for the item of inventory being evaluated.

Reference no: EM133183799

Questions Cloud

Calculate the size of each contribution : Suppose Marsha decided to wait 10 years before she started contributing to her IRA. Calculate the size of each contribution
Determine the division segment margin : Crane Corporation's Small Craft division reported a net operating loss of $2311000 in the most recent reporting period. Determine the division segment margin
What is the division roi : Pharoah Corporation's Port division has a segment margin of $417000 and net sales revenue of $4490000. What is the division ROI
Course can be applied to marketing world : What are one or two ways the tools and concepts you learned in this course can be applied to the marketing world?
Determine the firm total cost based upon the calculated eoq : Question - Meriah Plastics Sdn Bhd annual sales are 42,000 units. Determine the firm's total cost based upon the calculated EOQ
Determine the correct balance of the ordinary share capital : Tapu's articles of incorporation authorized the issue of 2,400,000 ordinary shares, Determine the correct balance of the Ordinary share capital
How much is the contribution margin per unit : A contribution margin per unit of $12. It takes 6 machine hours to produce one chair. How much is the contribution margin per unit of limited resource
How would taxes play a role in this decision : If you plan to sell your stock and/or bond in 3 years would your decision change? How would taxes play a role in this decision
Benefits of medical coding in health care industry : Discuss the benefits of medical coding in the health care industry. How can organizations, such as the Centers for Disease Control and Prevention (CDC)

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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