The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £500 Required: (i) Calculate the EOQ (ii) Calculate the average inventory (iii) Calculate the total annual ordering cos (iv) Calculate the total annual inventory cost (excluding the purchase cost)
The following information relates to Unique Ltd for the year 2020: Annual Demand 408,375 units Annual cost of Holding £1.50 Annual cost of placing an order £500 Required: (i) Calculate the EOQ (ii) Calculate the average inventory (iii) Calculate the total annual ordering cos (iv) Calculate the total annual inventory cost (excluding the purchase cost)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 8P: Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning...
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The following information relates to Unique Ltd for the year 2020:
Annual Demand 408,375 units
Annual cost of Holding £1.50
Annual cost of placing an order £500
Required:
(i) Calculate the EOQ
(ii) Calculate the average inventory
(iii) Calculate the total annual ordering cos
(iv) Calculate the total annual inventory cost (excluding the purchase cost)
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