Ejercicio 1

Average Inventory
Capital Cost
Storage Cost
Risk Cost

Total cost of carrying inventory

Annual Carrying Cost

10,000
10%
25%
50%
85%
8,500

Ejercicio 2
Annual purchasing salaries
Operating expenses
for the purchasing
department
Inspecting and receiving costs per order
Orders a year
Average cost of ordering
Annual cost of ordering

65,000

25,000

$
$
$

25
9000
35
315,000

Ejercicio 3
Annual demand

2,000,000

Carrier 1 - Average transit time (days)

10

Carrier 2 - Deliver transit time (days)

Carrier 1 - Average annual inventory in

transit

54,794.52

Carrier 2 - Average annual inventory in

transit

38,356.16

Reduction in transit inventory

16,438.36

Wages for purchasing

Purchasing expenses

$
$

45,000
30,000

Customs and brokerage costs per order

25.00

Ejercicio 4

Cost of financing the inventory

8%

Storage Cost
Risk Costs
Average inventory
Orders placed in a year
Annual ordering cost
Annual carrying cost

6%
10%
250,000
5000
200,000
60,000

$
$
$

Ej
a. Calculate the annual dollar usage of each item
Part Number
1
2
3
4
5
6
7
8
9
10
Total

Annual Unit Usage

21,000
5,000
1,600
12,000
1,000
50
800
10,000
4,000
5,000
60,450

b. List the items according to their total annual dollar usage

c. Calculate the cumulative annual dollar usage and the cumulative percentage of items
d. Group the items into A, B, and C groups based on percentage of annual dollar usage
Part Number
2
5
8
1
4
10
3
9
6
7
Total

Annual $ Usage
200,000
100,000
30,000
21,000
12,000
5,000
4,800
4,000
2,500
1,600
380,900

Ej
Record of purchases of a company

First quarter inventory (units)

Second quarter usage (units)

Date

Quantity received

April
May
June

100
100
100
0
210

a. Calculate the cost of goods sold (COGS) and the valuation of second quarter ending inventory using
Date
April
May
June
Inventory Purchased
Usage units
FIFO

Ending Inventory

Quantity received
100
100
100
300
210
90

COGS
LIFO

Ending Inventory

90

COGS
AVERAGE

Ending Inventory

90

COGS
STANDARD

Ending Inventory
COGS

90

Ejercicio 5

Unit Cost $

Annual $ Usage
1
40
3
1
100
50
2
3
1
1

21,000
200,000
4,800
12,000
100,000
2,500
1,600
30,000
4,000
5,000
380,900

tage of items
dollar usage
Cumulative $
Usage
200,000
300,000
330,000
351,000
363,000
368,000
372,800
376,800
379,300
380,900

Cumulative % $
Cumulative % of
Usage
Items
52.51%
10
78.76%
20
86.64%
30
92.15%
40
95.30%
50
96.61%
60
97.87%
70
98.92%
80
99.58%
90
100.00%
100

Class
A
A
B
B
B
C
C
C
C
C

Ejercicio 6

Unit cost ($)

10
12
14

rter ending inventory using FIFO, LIFO, Average Cost and Standard Cost (defined by the company as $12,5/unit)
Unit cost ($)

10
12
14

$
$
$
$

1,000
1,200
1,400
3,600

14

1,260

2,340

900

2,700

1,080

2,520

1,125

135

10

12

13

he company as $12,5/unit)