On the average, a company has a work-in-process lead time of 10 weeks and annual cost of
Question:
On the average, a company has a work-in-process lead time of 10 weeks and annual cost of goods sold of $30 million. Assuming that the company works 50 weeks a year:
a. What is the dollar value of the work-in-process?
b. If the work-in-process could be reduced to 5 weeks and the annual cost of carrying inventory was 20% of the WIP inventory value, what would be the annual savings?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (9 reviews)
a Weekly cost of goods sold 30000000 600000 50 Value of 10 ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
Question Posted:
Students also viewed these Earth sciences questions
-
On the average, a firm has an 8-week lead time for work-in-process, and annual cost of goods sold is $12 million. Assuming that the company works 50 weeks a year: a. What is the dollar value of the...
-
The opening backlog is 800 units. Forecast demand is as shown here. Calculate the weekly production for level production if the backlog is to be reduced to 100 units. 3 5 2 4 6. Week Total Forecast...
-
Calculate the available to promise using the following data. There are 50 units on hand. Week 1 2 3 5 4 30 30 Customer Orders 20 50 30 50 MPS 100 100 ATP 2.
-
Introduction to Accounting An Integrated Approach EighthEdition Chapter 5 P5.10 P5.10 Engelhaupt Company is considering a switch to JIT. It has gathered the following data: In addition, Engelhaupt...
-
The plant manager of Shenzhen Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $1,400,000. The manager believes that the new investment...
-
Evaluate the given expressions. Use ln 2 = .69 and ln 3 = 1.1. (a) ln 12 (b) ln 16 (c) ln(9 2 4 )
-
Have you ever read in the newspapers about the types of people who engage in company misdeeds?
-
Healthy Eating Foods Company is a distributor of nutritious snack foods such as granola bars. On December 31, 2016, the firms general ledger contained the accounts and balances that follow. ACCOUNTS...
-
1) Write a Python function to convert mass values from gram to ounce and return the conversion result. The conversion formula is ounce = gram x 0.035274. The function header is: def gm_to_ounce...
-
Chris, a local baker, is interested in opening her very own Cupcake Cafebut to make it worth her while she needs to earn at least $35,000 per year in profit from all segments. She's lucked out and...
-
In problem 1.1, how much would sales have to increase to provide the same increase in profits? In Problem If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is...
-
Amalgamated Fenderdenters sales are $10 million. The company spends $3.5 million for purchase of direct materials and $2.5 million for direct labor; overhead is $3.5 million and profit is $500,000....
-
Write a recursive method called countBinary that accepts an integer n as a parameter and that prints all binary numbers that have exactly n digits in ascending order, each on its own line. All digits...
-
The following events pertained to First Capital Company. Required 1. Calculate the fair value of the bond at the following dates: (a) 31 December 20x0 (b) 31 December 20x1 (c) 31 December 20x2 2....
-
Do the follow contractual cash flows meet the SPPI (solely payments of principal and interest) test? (a) A bond with stated maturity date, and principal and interest linked to an inflation index of...
-
Bank X gives 20 loans of $100,000 each, a total of $2,000,000 to company A. At initial recognition, the expected loss rate based on historical trend for company A is one default in the first year,...
-
Wello Contractors purchased construction equipment with an invoiced price of $800,000 from Capital Manufacturers on 1 January 20x1, and issued a two-year note to Capital Manufacturers. The interest...
-
On 1 January 20x1, Delphi Company issued 4% convertible bonds with a face value of $10,000,000 at par. The bond matured on 31 December 20x5. The bond was convertible into ordinary shares of Delphi...
-
Sunrise Corp. is a major regional retailer. The chief executive officer (CEO) is concerned with the slow growth both of sales and of net income and the subsequent effect on the trading price of the...
-
What are technical skills At what level are they most important and why?
-
Place the following stages in addressing environmental problems in order and briefly explain each: long-term evaluation, public education and involvement, risk analysis, scientific assessment,...
-
What does the term system mean in environmental science?
-
In what ways do decisions about energy use and climate change that we make today limit the possibilities available to the next generation? Explain your answer.
-
What does Rafe represent to Elsa on the night they meet? Is it simply sex and loneliness? Or do you think there's something deeper involved? Another small defiance against her parents'...
-
Do all 6 questions. Each question is worth 10 marks, for a total of 60 available marks. The test is worth 40% of your course grade Question 1 ( 10 marks total) Elasticity, Competition versus...
-
Plant-based meat alternatives are on the rise as consumers become more health and environmentally conscious. Using the demand and supply analysis, how does this trend impact the meat industry in the...
Study smarter with the SolutionInn App