EOQ, Ordering Cost, Carrying Cost, and Total Inventory-Related Cost Ranger Company purchases 20,530 units of Product Deta each year in lots of 864 units per order. The cost of placing one order is $14, and the cost of carrying one unit of product in inventory for a year is $8. Required: If required, round your answers to nearest whole value 1. What is the EOQ for Beta? units 2. How many orders for Beta will Ranger place per year under the EOQ policy? orders per year 3. What is the total ordering cost of Beta for a year under the EOQ policy? D 4. What is the total carrying cost of Beta per year under the EOQ policy? 5. What is the total cost of Ranger's inventory policy for Beta per year under the EOQ policy?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Remark Answer first three sub parts only

 

EOQ, Ordering Cost, Carrying Cost, and Total Inventory-Related Cost
Ranger Company purchases 20,530 units of Product Beta each year in lots of 854 units per order. The cost of placing one order is $14, and the cost of carrying one unit of product in
inventory for a year is $8.
Required:
If required, round your answers to nearest whole value.
1. What is the EOQ for Beta?
units
2. How many orders for Beta will Ranger place per year under the EOQ policy?
orders per year
3. What is the total ordering cost of Beta for a year under the EOQ policy?
4
4. What is the total carrying cost of Beta per year under the EOQ policy?
5. What is the total cost of Ranger's inventory policy for Beta per year under the EOQ policy?
Transcribed Image Text:EOQ, Ordering Cost, Carrying Cost, and Total Inventory-Related Cost Ranger Company purchases 20,530 units of Product Beta each year in lots of 854 units per order. The cost of placing one order is $14, and the cost of carrying one unit of product in inventory for a year is $8. Required: If required, round your answers to nearest whole value. 1. What is the EOQ for Beta? units 2. How many orders for Beta will Ranger place per year under the EOQ policy? orders per year 3. What is the total ordering cost of Beta for a year under the EOQ policy? 4 4. What is the total carrying cost of Beta per year under the EOQ policy? 5. What is the total cost of Ranger's inventory policy for Beta per year under the EOQ policy?
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Basic Accounting Terms
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education