Answer:
The number of units started into production is 7,000.
Explanation:
Number of units started into production = Units transferred out + units of ending work in process - units of beginning work in process
= 9,000 + 2,000 - 4,000
= 7,000
Answer:
D = 2,510 brackets
H = $1.60
Co = $20
EOQ = √2 x 2510 x 20/1.60
EOQ = 250 units
Average inventory = EOQ/2
= 250/2
= 125 units
Total Holding Cost = QH/2
= 250 x $1.60/2
= $200
No of order = Annual demand/EOQ
= 2,510/250
= 10 times
Annual ordering cost = DCo/Q
= 2,510 x $20/250
= $200
Total annual cost = Annual ordering cost + annual holding cost
= $200 + $200
= $400
Time between orders = No of working days in a year/No of order
= 250/10
= 25 days
Explanation: Economic order quantity is a function of square root of 2 x annual demand x ordering cost per order divided by holding cost per item per annum. D denotes annual demand, Co is ordering cost per order and H represents holding cost per item per annum.
Average inventory is calculated as EOQ/2
Total annual holding cost is calculated as EOQ multiplied by holding cost per item per annum/2
No of order is the ratio of annual demand to EOQ
Annual ordering cost is calculated as annual demand multiplied by ordering cost per order divided by EOQ
Total annual cost is the aggregate of annual ordering cost and annual holding cost
Time between orders is the ratio of number of days in a year to number of order
Answer:
A producer of fixed proportion goods X and Y ( Q = QX = QY) has marginal costs and revenues of MC = 12 Q , MRX = 54 – 6 QX , MRY = 126 – 12 QY . The producer should produce how …
Answer:
175,000 units
Explanation:
total transferred units = beginning work in progress units + number of units started and completed
- beginning work in progress = 25,000 units
- units started and completed during March = 150,000 units
total transferred units = 25,000 + 150,000 = 175,000 units
