Exercise 22: The annual demand for an item is 3,200 units. The units cost is P6 and inventory carrying charges is 25% p.a. If the cost of one procurement is P150, determine: (a) E.O.Q (b) No. of orders per year (c) Time between two consecutive orders.

Exercise 22: The annual demand for an item is 3,200 units. The units cost is P6 and inventory carrying charges is 25% p.a. If the cost of one procurement is P150, determine: (a) E.O.Q (b) No. of orders per year (c) Time between two consecutive orders.

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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Question

Exercise 22: The annual demand for an item is 3,200 units. The units cost is
P6 and inventory carrying charges is 25% p.a. If the cost of one
procurement is P150, determine:
(a) E.O.Q (b) No. of orders per year (c) Time between two consecutive
orders.

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