A Manufacturing company uses 1200 units of an item annually and the cost price is $250 per
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Question:
A Manufacturing company uses 1200 units of an item annually and the cost price is $250 per unit. The ordering costs are $600 per order and holding costs are $4.00 per item per annum.
Required:
- Calculate The economic order quantity.
Determine the following:
- The number of orders per annum
The average inventory held
The annual stock holding cost
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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