.Balance of Work in Process and Finished Goods, Cost of Goods Sold Derry Company uses job-order costing. At the end of the month
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Answer:
amount paid at a rate of 9% = 90000
amount paid at a rate of 7% = 170000-90000=80000
Explanation:
We have given total amount = $170000
Let amount paid at rate of 9% is x
Then amount paid at a rate of 7% = 170000-x
We know that sum of individual interest will be equal to total interest
So
So amount paid at a rate of 9% = 90000
And amount paid at a rate of 7% = 170000-90000=80000
Solution :
Given data:
Annual demand, D = 180,000 chairs
Ordering cost, F = $ 150 per order
Annual holding cost per unit, C = $25
Lead time of order, L = 5 days
Standard deviation of order during lead time = 30
a). The optimal order quantity
= 1469.69
= 1470 (rounding off)
b). The Z value of the customer service of 90%,
i.e., the probability of 0.90 as per normal distribution table = 1.29
∴ Safety stock = Z value x standard deviation of order during lead time
= 1.29 x 30
= 38.7
= 39 (rounding off)
c). The reorder point
= 3039
d). The optimal annual total inventory cost
= 18367.34 + 18375
= $ 36,742.34