1.2 REQUIRED Calculate the economic order quantity (EOQ) from the information provided below. INFORMATION The monthly demand for an item sold by Super Stores is 1 000 units. The cost is R6 per unit and the item is sold at cost price plus 50%. The ordering cost amounts to R25 per order and the holding cost per unit is equal to 10% of the unit cost of the item.

1.2 REQUIRED Calculate the economic order quantity (EOQ) from the information provided below. INFORMATION The monthly demand for an item sold by Super Stores is 1 000 units. The cost is R6 per unit and the item is sold at cost price plus 50%. The ordering cost amounts to R25 per order and the holding cost per unit is equal to 10% of the unit cost of the item.

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...

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A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?
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QUESTION 1 The following information regarding the purchases and issues to production or component J for a project of Kia Limited during April 2020 is available: Purchases April Units Total invoice price 01 13 000 R91 000 10 15 000 R120 000 20 14 000 R126 000 Issues to production April Units 05 8 000 15 9 000 25 13 000 Refer to the information provided above and answer the following questions: 1.1.1 Use the first-in-first-out (FIFO) method to complete the following table for the transactions provided below: Purchases Issues Balance Date Quantity Price Amount Quantity Price Amount Quantity Price Amount 1.1.2 Use the weighted average cost method to complete the above table for the transactions up to 15 April 2020 only. Where applicable, round off the weighted average cost per unit to the nearest cent and other amounts to the nearest Rand.
The order cost per order of an inventory is OMR. 60 with an annual carrying cost of OMR. 4 per unit. The annual demand is 12000 units. Calculate: Economic Ordering Quantity, Number of Orders per year and Ordering cost per year. a. 500 units, 20 Orders and 1200 OMR b. 480 units, 20 Orders and 1500 OMR c. 400 units, 20 Orders and 1800 OMR d. 600 units, 20 Orders and 1200 OMR
The annual inventory requirement at the C &E Enterprises is P2,500 units. Each inventory item has a value of P5,000. Ordering cost is P50.00. Carrying cost is 20% of average inventory. a. Optimal number of order per year b. Economic order quantity c. Annual carrying cost d. Annual Ordering cost e. Total annual inventory cost
The purchase price of an item of inventory is $25 per unit. In each three month period the usage of the item is 20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is $20. What is the Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit?
Question 3:A supplier sells Hipoint-brand pens to stationary shops. The annual demand isapproximately 24,000 pens. The supplier pays SR5 for each pen and estimates that theannual holding cost is 30 percent of the pen's value. It costs approximately SR350 to placean order. The supplier currently buys 1000 pens per orderi. Determine the annual ordering and inventory cost (in SR) for current orderquantity.ii. Determine the economic order quantity (EOQ).iii. Determine the total annual cost for the EOQ