Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? * O P5,760 O P5,280 O P8,160 O P2400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory
carrying cost is equal to 20% of the purchase price. The company uses its inventory at a
constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400
boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what
is the cost of carrying inventory? * G
O P5,760
P5,280
O P8,160
O P2,400
Transcribed Image Text:Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? * G O P5,760 P5,280 O P8,160 O P2,400
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