Question: On Average, a company has work in process lead time of 10 weeks and annual cost of goods sold is $12,000,000. Assume the company works

On Average, a company has work in process lead time of 10 weeks and annual cost of goods sold is $12,000,000. Assume the company works 50 weeks per year.

There are two parts to this assignment.

Part a. What is the dollar value of the WIP?

Weekly COGS = 30,000,000 / 50 = _________ so the value of 10 weeks WIP = 10 x_________ or ____________.

Part b. Assume WIP was reduced to five weeks and annual cost of carrying inventory is 20% of WIP value. What is the savings per year?

Value of five weeks of WIP _________ times Carrying cost (20%) = Annual savings $________.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Question 2 On average, a company has a 10-week production lead time and an annual cost of Goods sold of $26 million. Assuming the company works 45 weeks per year: a. What is the dollar value of the...

1.3 On the average, a company has a 12-week production lead time and an annual cost of goods sold of $38 million. Assuming the company works 50 weeks per year: a. What is the dollar value of the WIP?...

Hobart Corporation manufactured 20 000 heaters during November. The overhead cost-allocation base is $15.75 per machine-hour. The following variable overhead data pertain to November: Actual Budgeted...

Hello if possible i also need these five questions answered as well. i will update price. #7,9,13,16,17. Student ID: 22039100 Exam: 061400RR - Cost Concepts and Types of Costing When you have...

6,750 MGT1218 Inventory & Materials Management Assignment 1 1. On the average, a company has a work-in-process lead time of 9 weeks and annual cost of goods sold of $30 million. Assuming that the...

Instructions: Please prepare written responses to the following questions. Wherever calculations are required, be sure to show your work, including any formulas that were used. Round numbers to...

Mini-Practice Set One - InstructionsJob Order Cost AccountingYou have learned how to account for the basic elements of manufacturing costs. This practice setcombines these various techniques and...

Reconsider Exercise 7.8. Now suppose that the mail-order firm follows a periodic review policy with a review period of 2 weeks. Recall that the firm has four regional warehouses with demand at each...

ATHENIAN PRESS, INC Redesigning Sales Territories Steve Womble, the sales manager for the Athenian Press newspaper, was reviewing the quarterly summary for the papers advertising sales and was...

Evaluate the integral ? 1+tanr 1 tang -dx

If we start with 400 atoms of a radioactive substance, how many would remain after one half-life? two half-lives? after three half-lives? 2. If we start with 48 atoms of a radioactive substance, how...

otal points: - / 1 Attempts left: 1 ou attend a university in a city that has four colleges. You buy your lunches at your university cafeteria. You think the prices at the cafeteria are igh. You...

Schedule of Cash Payments Green Mountain Financial Inc. was organized on February 28, 2014. Projected selling and administrative expenses for each of the first three months of operations are as...