Chavez Chemical Inc. requires 20,000 gallons of material annu- ally; the cost of placing an order is

Question:

Chavez Chemical Inc. requires 20,000 gallons of material annu- ally; the cost of placing an order is $20; the annual carrying cost per gallon is $5.

Required:

Determine the EOQ from potential order sizes of 300, 400, 500, 600, 700, and 800 gallons by constructing a table similar to the one appearing on page71.

Chavez Chemical Inc. requires 20,000 gallons of material annu- ally;

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of Cost Accounting

ISBN: 978-1133187868

16th edition

Authors: Edward J. Vanderbeck

See More Books

Question Posted: May 05, 2014 10:22 AM

See More Questions

A retailer estimates her fixed cost for placing an order at $ 1,000. Currently, she orders in optimal quantities of 400 units. She has, however, heard of the benefits of just- in- time purchasing a...
A chemist would like to monitor the progress of a chemical reaction using UV/V is spectroscopy. The spectrum for the starting material (solid line) and the product (dashed line) are given. At what...
a. Construct a table similar to Table 6.2, showing all possible outcomes of tossing four coins at once. b. Construct a table similar to Table 6.3, showing the probability distribution for the events...
Kellogg Company is expected to pay $2.00 in annual dividends to its common shareholders in the future. Our best estimate of the expected cost of equity capital is 5.0% and the expected growth rate in...
sin(2). Simplify the answer in terms of cos(2). Use the angle addition formulas (Equations 2.10.1 and 2.10.2) to expand the following and use the product and sum rules to compute the derivatives of...
How are DFFs used to synchronize signals?
We have seen that we can use a bubble plot to show a third quantitative variable on a scatterplot. Another way to show three quantitative variables together is to use a 3-dimensional scatterplot,...
Discuss why variable pay-for-performance plans have become popular and what elements are needed to make them successful.
A $1,000 par value bond that pays interest annually just paid $106 in interest. What is the coupon rate? Q2) A 09.60% coupon, 21-year annual bond is priced at $986. What is the current yield for...
You are the lead social worker working in a parent and child advocacy non-profit center. A parent comes to you to report that her son is failing in school. He has earned failing grades all year and...
Starr Co. predicts it will use 63,000 units of material during the year. The expected daily usage is 500 units, and there is an expected lead time of five days and a desired safety stock of 1,500...
Spillane's Specialty Clothing Inc. uses a job order cost system. A partial list of the accounts being maintained by the company, with their balances as of November 1, follows: Cash . . . . . . . . ....
What is a service culture? Why is it a requirement for an internal marketing program?
Second Time Round Accounting specialises in second hand accounting and business text books. Sales volume last year amounted to 54,000 texts. The company's annual fixed expenses are $240,000. The...
Babys Care Corporation has an infinite horizon with a constant dividend of $25. Your uncle Sam and his wife are willing to invest their money in purchasing the shares of this corporation. While your...
need information on the following: interpersonal skills cash handling office practices and procedures understanding and following directions mathematics verifying accuracy of information
Calculate the cost of food sales under a perpetual inventory system for the month ended March 31 given the following information: Inventory on March 31 was $2,900 Storeroom purchases for the month...
Describe how the student performed a payment reconciliation whilst following security procedures for cash handling ?
Calcium hydroxide will precipitate from solution by the following equilibrium: Write the equilibrium expression for this reaction. Strategy Write the equilibrium expression as before but do not...
If the amplifier indicated by the box input impedance of oo, which of the following statements are true ? has an open loop gain as well as Feedback factor (\beta = 1/ R_1\) The feedback is voltage...
What are the steps basic for designing output?
Why is it usually reasonable to assume that labor and factory overhead are added evenly throughout the production process?
If materials are not put into process uniformly, what must be considered when determining the cost of the ending work in process?
In what way does the cost of production summary, Figure 6-2, differ from the cost of production summaries presented in Chapter 5? What is the reason for this difference in treatment?
The Power of Trade and Comparative Advantage: Work It Out 3 ? Here's another specialization and exchange problem. This problem is wholly made-up, ? so that you won't be able to use your intuition...
Government spending as a fiscal policy tool is used to: A) ?Decrease the national debt B) ?Directly stimulate economic activity by increasing demand C) ?Reduce inflation D) ?Lower interest rates
Automobile demand has fallen during a recent recession, and Ana has been laid off from her job on the assembly line. Rajiv recently lost his job as a waiter at a local restaurant. A recent increase...

Chavez Chemical Inc. requires 20,000 gallons of material annu- ally; the cost of placing an order is

Question:

Order Number of Total Size Ave Total Carrying Total Order8 Orders Order Cost Inventory $1,000 Carrying Cost $1,040 100 100 S 40 100 300 150 120 25 410 400 410 160 500 170 140 800 110 470 1,000 10 100 500 500

Step by Step Answer:

Order Size Number of Orders Total Order Cost Average Inventory Total Carrying ...View the full answer

Principles of Cost Accounting

Students also viewed these Cost Accounting questions