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3 years ago

A liquid company produces hand sanitizer which has demand of 300,000 units per year.

Business

1 answer:

jarptica [38.1K]3 years ago

5 0

Answer:

EOQ = = 15,491.93 units

Optimal order interval 18.8 days (19.36 orders in year)

Total cost = $150,774.60

Explanation:

The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.

It is computed using he formulae below

EOQ = √ (2× Co× D)/Ch

Co- ordering cost per order- 20,

Ch -Holding cost per unit per annum- 10%× $0.5= 0.05

Annual demand: D- 300,000

EOQ = √(2× 20 * 2,580)/(10%× 0.5)

= 15,491.93 units

Assuming 365 days, the optimal order interval in dates

Number of orders per year

= annual demand/EOQ

= 300,000/ 15,491.93

= 19.36 times

in days:

= EOQ/300,000 × 365 days

= (15,491.93/ 300,000) × 365 days

= 18.8 days

Total annual cost =

Total cost Purchase cost + Carrying cost + ordering cost 

Purchase cost = $0.5 × 300,000 = 150,000

Carrying cost = (15,491.93/2) * 10%*0.5 = 387.29

Ordering cost = (300,000/15,491.93 ) × 20 = 387.29

Total cost 150,774.60

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The following are the assets and liabilities of Jill Carlson Realty Company, as of January 31, 2018. Also included are revenu

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Complete Question:

Apply the accounting equation; construct a balance sheet) The following are the assets and liabilities of Jill Carlson Realty Company, as of January 31, 2018. Also included are revenue, expense, and selected stockholders' equity figures for the year ended on that date (amounts in millions):

Complete Table is in the attachment given at the end of the answer.

Requirement 1.

Construct the balance sheet of Jill Carlson Realty Company at January 31, 2018. Use the accounting equation to compute ending retained earnings.

<h2>Answer:</h2>

Balance Sheet of Jill Carlson Realty Company, as of January 31, 2018

<h2>ASSETS</h2>

Current Assets

Cash $57.2

Receivables $0.5

Non Current Assets

Investment Assets $79.4

Property, Plant and Equipment $1.6

Other Assets $9.3

Total Assets $148

<h2>LIABILITIES</h2>

Current Liabilities $2.9

Non Current Liabilities $102.6

Total Liabilities $105.5

EQUITY

Common Stock $39.2

Closing Retained Earnings (Step1) $3.3

Total Equity $42.5

Step 1: Find Closing Retained Earnings

As we know that:

Closing Retained Earnings = Total Assets - Total Liabilities - Common Stock

Here

Total Assets is $148 million

Total liabilities is $105.5 million

Common Stock is $39.2 million

By putting these values in the above equation, we have:

Closing Retained Earnings = $148 million - $105.5 million - $39.2 million

Closing Retained Earnings = $3.3 million

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3 years ago

MasterCom Corporation corporation produces a semiconductor chip used on communications. the direct materials are added at hte st

Mariana [72]

Answer:

a. The equivalent units of work done in June= 450,000

b. The total manufacturing cost per chip= $ 12.199= $ 12.2

Explanation:

a. The equivalent units of work done in June

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Units Completed 425,000

Units still in Process completed 50% = (50,000 * 50%) 25,000

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