CALCULATING INVENTORY CARRYING CHARGESPROBLEM 1 Using the following data, calculate (1) the total inventory carrying charge and (2) the per pound inventory carrying charge for inventory that is used during normal production 144,000 pounds of a raw material used each year Raw material costs $1 75 per pound Demand occurs at a steady rate throughout the year Inventory is received at the start of each month and used throughout the month until it reaches zero at the end of the month Inventory carrying charge is 24 annually The average inventory method is used ((BI EI) 2) Average inventory for a period Total carrying charges for this item Per pound carrying charge for this item

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Question: CALCULATING INVENTORY CARRYING CHARGESPROBLEM 1 Using the following data, calculate (1) the total inventory carrying charge and (2) the per pound inventory carrying charge for

CALCULATING INVENTORY CARRYING CHARGESPROBLEM 1 Using the following data, calculate (1) the total inventory carrying charge and (2) the per pound inventory carrying charge for inventory that is used during normal production:

144,000 pounds of a raw material used each year
Raw material costs $1.75 per pound
Demand occurs at a steady rate throughout the year
Inventory is received at the start of each month and used throughout the month until it reaches zero at the end of the month
Inventory carrying charge is 24% annually
The average inventory method is used: ((BI + EI)/2) = Average inventory for a period

Total carrying charges for this item:

Per pound carrying charge for this item:

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