Question: Using the following data, calculate ( 1 ) the total inventory carrying charge and ( 2 ) the per unit inventory carrying charge for inventory

Using the following data, calculate (1) the total inventory carrying charge and (2) the per unit inventory carrying charge for inventory that is used as safety stock: Item: chemical raw material 150,000 pounds of this raw material used each year Cost: $14.50 per pound One months worth of annual demand to be held as safety stock Inventory carrying charge is 23% annually Total carrying charges for this safety stock: Per unit carrying charge for this safety stock:

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!

Q:

This exercise is a business application that requires writing formulas in Excel. ExcelExercisel - Excel Sheet (1) - Excel File Home Insert Page Layout Formulas Data Review View OnBase Tell me what...

Q:

Smart Company prepared its annual financial statements dated December 31. The company reported its inventory using the FIFO inventory costing method and failed to evaluate its net realizable value at...

Q:

Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its...

Q:

Elizabeth Burke wants to develop a model to optimize production for the next year. Here are the constraints: Material balance constraint: X t + I t-1 - I t + L t = demand in month t...

Q:

Given a direct cost (material, labor, overhead) of $600, along with the following unit cost inbound freight to DC ($22.00), labor cost of ($20.00). space ($25.00). insurance ($ 2.00). Interest...

Q:

Smart Company prepared its annual financial statements dated December 31. The company reported its inventory using the FIFO Inventory costing method and failed to evaluate its net realizable value at...

Q:

I just need answers for questions 1 and 2! Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing...

Q:

hey Chegg! Can you please help me on this particular question? Thanks!! I appreciate it! Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported...

Q:

PA7-2 Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market/Net Realizable Value [LO 7-4] Springer Anderson Gymnastics prepared its annual financial statements dated...

Q:

Calculate the total inventory carrying charge associated with carrying an average of one months annual demand as safety stock. Next, calculate the per unit charge associated with carrying an average...

Q:

Draw (using Haworth projections) the fragments of xylan and glucomannan structures shown on page 291. In page 298 Chitin CH HOH HO 0 CHOH NH CH,

Q:

A yellow sticky substance present on the surface of the entomophilous pollen grain is- A. Lignosuberin B. Sporopollenin C. Pollen kitt D. Mucopolysaccharide

Q:

7. Every member except Ellen sang a song. Every member except Nancy gave a speech. Ellen is not Nancy. Th erefore, Ellen gave a speech and Nancy sang a song. (Mx: x is a member; Sx: x sang a song;...

Q:

Prepare in good form an income statement for Virginia Slim Wear. Take your calculations all the way to computing earnings per share. (Input all amounts as positive values. Round EPS answer to 2...