User Account

All Pages

What are the total inventory costs

Assignment Help Accounting Basics
Reference no: EM132637883

Question - The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually. The wheat must be purchased in multiples of 2,000 bushels. Ordering costs, which include grain elevator removal charges of P3,500, are P5,000 per order. Annual carrying costs are 2 percent of the purchase price of P5 per bushel. The company maintains a safety stock of 200,000 bushels. The delivery time is 6 weeks.

REQUIRED -

1. What is the EOQ?

2. At what inventory level should an order be placed to prevent having to draw on the safety stock?

3. What are the total inventory costs, including the costs of carrying the safety stock?

4. The wheat processor agrees to pay the elevator removal charges if Strawberry Bread will purchase wheat in quantities of 650,000 bushels. Would it be to Strawberry Bread's advantage to order under this alternative?

Reference no: EM132637883

Questions Cloud

What is the present value of an annuity : What is the present value of an annuity of $5,500 per year, with the first cash flow received three years from today and the last one received 25 years from tod
Assignment on quantitative problem : Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle.
Data mining from other analytical tools and techniques : What are the main reasons for the recent popularity of data mining? Distinguish data mining from other analytical tools and techniques.
Describe product or service offering : Describe your product or service offering as it is currently in terms of features and benefits, price and the total cost of ownership.
What are the total inventory costs : The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually. What are the total inventory costs
What number of visits is required to break even : You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:
Why do employees file discrimination complaints : Administration of the Collective Bargaining Agreement: Why Do Employees File Discrimination Complaints and Grievances? Advice to Managers and Supervisors.
Infrastructure as Service : How this Service helps in computing, networking, storage which helps Cloud providers maintain and monitor the physical infrastructure to deliver IaaS.
Describe an offering based on features of ownership : Describe an offering based on features, benefits, price, and costs of ownership. Suggest marketing strategy implications based on the type of consumer

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate Crane direct labor rate variance for September

Crane Paints manufactures artist's oil paints. Each 40 ml tube of paint requires 5 minutes of direct labor, Calculate Crane's direct labor rate variance

  What is the maximum he can contribute

What is the maximum he can contribute, on a tax-deferred basis under a salary reduction agreement, to this plan

  Positive or a negative development

Why have several countries recently introduced auditor oversight bodies? Is this a positive or a negative development?

  Explain the four methods of allocating joint costs

Explain when you would use a process costing system and what the purpose of equivalent units is.

  Find the simple interest on a 400 investment made for 5

find the simple interest on a 400 investment made for 5 years at an interest rate of 7year. what is the accumulated

  What would pinellas pillow companys finished-goods inventory

What would be Pinellas Pillow Company's finished-goods inventory cost on December 31 under the variable-costing method?

  Soobin corporation has coperate taxable income in 2014 or

soobin corporation has coperate taxable income in 2014 or 16000000. use the corporate tax table to calculate the income

  Which is an example of an event risk

Which of the following is an example of an event risk (as opposed to an information processing risk or a system resource risk)?

  What are the effects of the imputed interest rules

What are the effects of the imputed interest rules on these transactions? Compute Elizabeth's gross income from each loan: a. Richard, b. Woody and c. Irene

  Reasonable approximation normally distributed

An insurance company's losses of a particular type per year are to a reasonable approximation normally distributed with a mean of $150 million and a standard deviation of $50 million. (Assume that the risks taken on by the insurance company are en..

  Social security benefits 6000 adjusted gross income 35000

social security benefits 6000 adjusted gross income 35000 tax exempt interest is 1000 married filing jointly. could

  Why are budgets important to a company

The topic for this week is budgets. Why are budgets important to a company? Choose your favorite manufacturing company

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd