User Account

All Pages

Calculate the economic order quantity

Assignment Help Finance Basics
Reference no: EM132516274

Question 1:

Tampin Berhad, a manufacturer of paints, uses 3000 liter of chemicals per year. The cost of ordering the chemicals is RM20 per order. The cost of holding the chemicals in the warehouse is RM2 per liter per year. The lead time is 7 days.

Required:

a. Calculate the economic order quantity (EOQ).

b. Determine the Reorder Point of the chemicals.

c. The total credit sales of Tampin Berhad in 2018 were RM30 million. Accounts receivable were RM2 million. Calculate the Average Collection Period (ACP)

d. Terachi Berhad sells its product on terms of 7/10 net 30. The total credit sales last year were RM30 million. Accounts receivable were RM2 million. Do customers of Tampin Berhad pay on time? Why?

Reference no: EM132516274

Questions Cloud

How much is the amount of over- or underapplied overhead : $325000, $600000 in materials used, and $250000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?
Developed a working prototype of flying machine : Your two good friends, Wilber and Orville Wright, have just developed a working prototype of a flying machine. Explain why each item on the list is important.
What the cost of the finished goods on hand from the job is : Manufacturing overhead applied, $110000; units produced, 8000 units; units sold, 6000 units. The cost of the finished goods on hand from this job is
How much is cost of goods sold for the year : At the end of the year. Beginning and ending work in process for 2019 are $3000 and $4000, respectively. How much is cost of goods sold for the year?
Calculate the economic order quantity : The cost of ordering the chemicals is RM20 per order. The cost of holding the chemicals in the warehouse is RM2 per liter per year. The lead time is 7 days.
What the total manufacturing costs for job is : Job No. 190 is charged with $150000 of direct materials costs and $150000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is
Impact personal awareness : What are two to three points that have you gained through peer presentations, course materials, and/or activities that will impact personal awareness
Foreign direct investment and collaborative ventures : Foreign Direct Investment and Collaborative Ventures - how this company apply this specific strategy and It is recommended that your project report
Find the activity base is direct labor costs : If annual overhead costs are expected to be $694000 and direct labor costs are expected to be $1000000, then if the activity base is direct labor costs

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd