A company has the following inventory specifications: Units required annually = 2400 Holding cost per unit per year = $0.8 Order preparation cost = $15 Calculate: a) Optimum lot size b) Annual holding cost c) Annual order cost d) Total annual cost

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 2TP: Assume your company uses the periodic inventory costing method, and the inventory count left out an...
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Please provide this question solution general accounting

A company has the following inventory specifications: Units
required annually = 2400 Holding cost per unit per year = $0.8
Order preparation cost = $15
Calculate:
a) Optimum lot size
b) Annual holding cost
c) Annual order cost
d) Total annual cost
Transcribed Image Text:A company has the following inventory specifications: Units required annually = 2400 Holding cost per unit per year = $0.8 Order preparation cost = $15 Calculate: a) Optimum lot size b) Annual holding cost c) Annual order cost d) Total annual cost
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