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Alja [10]
3 years ago
10

ABC Ltd. uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consum

ption is 80,000 units, Cost to place one order is $1,200, Cost per unit is $50, carrying cost is 6% of Unit cost, and EOQ is 8000 units. Find Total Cost of Inventory (Hint: total cost of inventory = Ordering Cost + Carrying Cost). (enter numerical value)
Business
1 answer:
viktelen [127]3 years ago
8 0

Answer:

The Total Cost of Inventory is $4,024,000

Explanation:

The computation of the total cost is shown below:

= Purchase cost + ordering cost + carrying cost

where,

Purchase cost = Annual consumption × Cost per unit\

                       = 80,000 × $50

                       = $4,000,000

Ordering cost = (Annual demand ÷ EOQ) × Cost to place one order

                       = (80,000 ÷ 8,000) × $1,200

                       = $12,000

Carrying cost = (EOQ ÷ 2) × carrying cost percentage × Cost per unit

                      = (8,000 ÷ 2) × 6% × $50

                      = $12,000

Now put these values to the above formula  

So, the value would equal to

= $4,000,000 + $12,000 + $12,000

= $4,024,000

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Answer:

$84,000

Explanation:

preference share dividend is at 5% on $100 par value. The  number of preference shares is 12,000 shares ( non cumulative)

The year 2017 preference share dividend pay out is 5% of 100 multiplied by 12,000 = $60,000

Deduct $ 60,000 from $144,000 dividend declared in 2017 , the balance is common stockholders dividend.

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3 years ago
A firm is considering two different capital structures. The first option is an all-equity firm with 75,000 shares of stock. The
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Answer:

$395833

Explanation:

Calculation to determine How much money is the firm considering borrowing if the interest rate is 8 percent

Amount to borrowed=(95000 / 75000) = [95000 – (X * 0.08)] / 50000

Amount to borrowed=1.26 = [95000 – (X * 0.08)] / 50000

Amount to borrowed=63333.33 = 95000 – (X * 0.08)

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2 years ago
B&amp;T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,300; direct materials, $14,700; proper
ivolga24 [154]

Answer:

Overhead incurred for may is $8,250

Explanation:

Factory overheads are costs that don not contribute directly to production.They are also know as indirect costs and include items such as insurance costs,administrative expenses, licensing, insurance, facility upkeep costs etc.

In B&T's case factory overhead items include:

a) Indirect labor                                                -  $6300

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Total factory Overhead for May = Indirect labor + Property taxes on production facility +Factory heat,lights and power + Insurance of plant and equipment

Total factory Overhead for May = 6300 + 810 + 970 + 170 =  $8250.

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