Calculate the total transportation cost, Cost Accounting

Assignment Help:

The sunshine tomato soup shippers produce tomato soup at three west coast canneries in Bakersfield, phoenix, and Eugene. The soup is shipped to four regional warehouses. Due to high demand, the company is considering opening a fourth cannery. The company is considering opening up the fourth cannery either at san diego, san jose, los angeles, or Stockton. The following table shows the cost of shipping a case from each cannery [existing and proposed] to each regional warehouse. The company wishes to ship all of its cannery capacity to the regional warehouses so that monthly transportation cost is minimized.

 

Source                         seattle,             los angeles,      Denver,           Dallas,             Maxium

                                    Washington     California        Colorado         Texas               monthly

                                                                                                                                    Cannery capacity

Phoenix, Arizon             $2.80                  $0.60             $1.20               $1.50              70,000

Eugene, Oregon            $0.50                   $1.20             $2.20                $2.90              80,000

Bakersfield, California    $1.80                   $04.0              $1.80               $2.20              90,000

Los angeles, California   $1.70                  $0.75              $1.75               $2.50              110,000

San diego, California      $1.80                   $0.60             $1.60               $2.60              110,000

San jose, California       $1.40                   $0.70             $2.00               $2.40              110,000

Stockton, California       $1.60                    $0.80            $1.80               $2.50               110,000

Monthly warehouse   

       Demand                 80,000                  90,000            70,000             100,000

 

  •  What is the total transportation cost if each of the four sites should be selected?
  •  White site should be selected to locate the next cannery? Why?
  •  State the shipment schedule associated with the selected site.
  •  For the optimum solution determined, perform Sensitivity Analysis and interpret the results.

Related Discussions:- Calculate the total transportation cost

Account analysis method of cost estimation, Account Analysis Method of Cost...

Account Analysis Method of Cost Estimation By Utilizing account analysis, the accountant classifies and examines each ledger account like variable mixed or fixed. Into their v

Compute the estimated value of inventory stolen at kji, The following are t...

The following are three independent situations where the reporting entity for which financial statements are being prepared are underlined. Every company has a December 31, 2012 ye

Price to set on the job, Bakeson Bearings Ltd is preparing to submit a bid ...

Bakeson Bearings Ltd is preparing to submit a bid for a bearings order.  Janet Lake,  CEO of the Manufacturing Division, has asked Jason Docker, the management accountant, to prepa

Determine a cost system that uses estimated overhead costs, 1) Presented be...

1) Presented below is a list of terms, followed by definitions or descriptions of those terms. a. Cost pool b. Actual cost system c. Cost driver d. Manufacturing diver

First in first out or fifo, First in First Out or FIFO FIFO method is ...

First in First Out or FIFO FIFO method is based upon the assumption such stock purchased first is issued first. Prices of stock purchased first are employed to determine the v

Optimal profit maximizing pricing strategy, Now assume that it is possible ...

Now assume that it is possible to distinguish consumer types one and two and there are no consumers of type three and the firm can charge a two part tariff. What would the optimal

What are variable costs, Variable costs are the cost that are directly prop...

Variable costs are the cost that are directly proportionate with the quantity of manufacture and or directly associated with the service.

Overhead variances, Overhead Variances This explains how the variable ...

Overhead Variances This explains how the variable overhead total variance and the fixed overhead total variances calculated. You can recall the overheads refer to production c

What would be the impact on net income, Brandywine Homecare, a not-for-prof...

Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $

Material cost control, Material Cost Control Therefore Materials form ...

Material Cost Control Therefore Materials form an important cost of output units and that should be controlled.  Material Control is more than merely recording the accounting

Write Your Message!

Captcha
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