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(a) Calculate the annual usage cost of each item. (b) Classify the items as A, B, or C. Item Annual Usage ($) Item Classification 101 102

(a) Calculate the annual usage cost of each item. (b) Classify the items as A, B, or C. Item Annual Usage ($) Item Classification 101 102

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(a) Calculate the annual usage cost of each item. (b) Classify the items as A, B, or C. Item Annual Usage ($) Item Classification 101 102 103 104 105 201 202 203 204 205
Transcribed Image Text:(a) Calculate the annual usage cost of each item. (b) Classify the items as A, B, or C. Item Annual Usage ($) Item Classification 101 102 103 104 105 201 202 203 204 205
Given the following list of items, Item Annual Demand Ordering Cost ($) Holding Cost (%) Unit Price ($) 101 750 10 20 0.50 102 1,910 10 30 0.20 103 5,230 25 30 1.00 104 380 15 25 4.50 105 1,730 35 35 1.20 201 10,230 25 15 0.75 202 1,300 10 20 1.35 203 1,910 20 25 0.20 204 730 40 25 0.80 205 150 10 15 2.50
Transcribed Image Text:Given the following list of items, Item Annual Demand Ordering Cost ($) Holding Cost (%) Unit Price ($) 101 750 10 20 0.50 102 1,910 10 30 0.20 103 5,230 25 30 1.00 104 380 15 25 4.50 105 1,730 35 35 1.20 201 10,230 25 15 0.75 202 1,300 10 20 1.35 203 1,910 20 25 0.20 204 730 40 25 0.80 205 150 10 15 2.50
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