62.62. The following information pertains to Material X which is used by ABC Co.:Annual Usage in unitsWorking Days per yearSafety Stocks in unitsNormal Lead time in Working DaysCarrying cost20,000250 days80030 days2 per unitUnits of Material X will be required evenly throughout the year. What is the reorder point? [nearestwhole number]Your answer 60. ABC Company buys 5,000 units annually for its manufacturing business. Thecost of receiving and placing an order is P20,000 including handling charges ofP8,000. Annual carrying costs are 5% of the purchase price of P15,000 per unit.The company maintains a safety stock of 150 units. The delivery time is 15 days.What is the total inventory cost? [units in the computations should be roundedoff to 2 decimal places]a. 494,850b. 499,950c. 502,250d. 504,850

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62. The following information pertains to Material X which is used by ABC Co.: Annual Usage in units Working Days per year Safety Stocks in units Normal Lead time in Working Days Carrying cost 20,000 250 days 800 30 days 2 per unit Units of Material X will be required evenly throughout the year. What is the reorder point? [nearest whole number] Your answer

62. The following information pertains to Material X which is used by ABC Co.: Annual Usage in units Working Days per year Safety Stocks in units Normal Lead time in Working Days Carrying cost 20,000 250 days 800 30 days 2 per unit Units of Material X will be required evenly throughout the year. What is the reorder point? [nearest whole number] Your answer

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Question

62.
62. The following information pertains to Material X which is used by ABC Co.:
Annual Usage in units
Working Days per year
Safety Stocks in units
Normal Lead time in Working Days
Carrying cost
20,000
250 days
800
30 days
2 per unit
Units of Material X will be required evenly throughout the year. What is the reorder point? [nearest
whole number]
Your answer

60. ABC Company buys 5,000 units annually for its manufacturing business. The
cost of receiving and placing an order is P20,000 including handling charges of
P8,000. Annual carrying costs are 5% of the purchase price of P15,000 per unit.
The company maintains a safety stock of 150 units. The delivery time is 15 days.
What is the total inventory cost? [units in the computations should be rounded
off to 2 decimal places]
a. 494,850
b. 499,950
c. 502,250
d. 504,850

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