The Thornton Company has found that its ordering cost of a raw material is ($ 20) and

Question:

The Thornton Company has found that its ordering cost of a raw material is $\$ 20$ and the carrying cost is $\$ 1$ per average unit of inventory per year. The company uses 10,000 units of raw material per year.

Required:

(1) Determine the optimal order quantity.

(2) Calculate the annual inventory cost of the optimal inventory policy.

(3) How many times should the raw material be ordered in a year?

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Cost Accounting For Managerial Planning Decision Making And Control

ISBN: 9781516551705

6th Edition

Authors: Woody Liao, Andrew Schiff, Stacy Kline

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Question Posted: May 17, 2024 08:01 AM

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The Thornton Company has found that its ordering cost of a raw material is ($ 20) and

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Cost Accounting For Managerial Planning Decision Making And Control

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