Solution-Calculate the reorder point for wood pellets

Calculate the reorder point for wood pellets

Assignment Help Cost Accounting

Reference no: EM132799111

Question - Sims Hardware sells wood pellets used in heating stoves and slow-cook grills. The supplier for the pellets pays all incoming freight. Following is detailed data collected regarding pellet inventory needs:

Annual demand for wood pellets 65,000 lbs.

Ordering cost per purchase order $120

Carrying cost per year 15% of purchase costs

Safety-stock requirements none

Cost of wood pellets $4 per 40 lb bag

The purchasing lead time is three weeks. Sims Hardware is open 240 days a year (48 weeks for 5 days a week).

Required -

1. Calculate the EOQ for wood pellets.

2. Calculate the number of orders that will be placed each year.

3. Calculate the reorder point for wood pellets.

Reference no: EM132799111

Questions Cloud

What is the most effective way to analyze the data : When you are looking at choosing the right activity to assess students what is the most effective way to analyze the data from the activity and be able.

Discuss the reason for the change : For the first paragraph of your post, summarize some of the key information about your organization, the change you are discussing, and one or two key points.

What is margin trading facility : What is Margin Trading Facility? What is Short Selling and Securities Lending & Borrowing? Also refer Short Selling in Portfolio Management

Explaining the vision and target of the action research : To begin the action research process, a researcher selects a focus and clarifies the vision and targets of the research. A close review of current scholarly.

Calculate the reorder point for wood pellets : The purchasing lead time is three weeks. Sims Hardware is open 240 days a year (48 weeks for 5 days a week). Calculate the reorder point for wood pellets

How much would be the actual return on plant assets : Fair value of plan assets, December 317,900,000 and PV of benefit obligation, January 1 P6,700,000. How much would be the actual return on plant assets

Is primary focus anti-discrimination and affirmative action : Is the primary focus anti-discrimination, affirmative action, or both? Highlighting the public versus private status of the institution, what is the source.

Prepare a behavior resource presentation : During this presentation you will provide a brief overview of the topic and share some of the resources included on the Behavior Resource list.

What amount should Milan report as Accumulated Profits : Total income since incorporation P420,000. In its December 31, 2014 financial position, what amount should Milan report as Accumulated Profits

User Account

All Pages

Calculate the reorder point for wood pellets

Reference no: EM132799111

Reference no: EM132799111

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT