Orders per year , Managerial Accounting

Lila Battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother's hardware shop, is in charge of purchasing. She estimates that it costs $10 each time an order is placed. This cost contains her wages, the cost of the forms used in placing the order, and so on. Moreover , she estimates that the cost of carrying 1 screw in inventory for a year is one-half of 1 cent. Suppose that the demand is constant throughout the year.


(a) How many number 6 screws should Lila order at a time if she wishes to decrease total inventory cost?

(b) How many orders per year would be placed? What would the yearly ordering cost be?

(c) What would the average inventory be? What would the yearly holding cost be


Posted Date: 3/21/2013 2:07:45 AM | Location : United States

Related Discussions:- Orders per year , Assignment Help, Ask Question on Orders per year , Get Answer, Expert's Help, Orders per year Discussions

Write discussion on Orders per year
Your posts are moderated
Related Questions

Describe the method of drawing a break even chart. 1) volume of production/output or sales is plotted on horizontal axis , i. e y - axis . the volume of sales or production ma

interest rates

During the year the company worked a total of 145,900 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,305,346. What is the amount of underapplied o

Determine Cost pool and Cost drivers Cost pool: it is another name given to a cost centre and,  therefore an activity cost centre may also be termed as an activity cost pool.

Explain the Types of standards The following is the brief description of various types of standards: 1) Basic standards: these are the standards which are assumed to remai

The revolving credit facility will be specified by the banker to the customer through providing specific amount of credit facility for a continuous basis. The borrower will not be

ARR gives a fast estimate of a project's value over its useful life. ARR is derived by determining profits before taxes and interest.   ARR is an accounting technique used fo

Factoring Services: All subsequent services are offer through the factor apart from the core service of purchasing receivables. 1)    Sales credit management and Ledger adminis