P3-3 Aeon Laketown predicis that 10,000. unis' of matérials will be used during the year. The expecled daily usage is 4o units. The expected lead time is 6 days and there is a sarety.stock of.300 units. Aeon expects that the cost of materials will be'P480 per unit. Jt. ánticipateş that it will cost.P200,tó. unlt. 6.place each order. The annual carrying cost is P1.00 per. Required:: Calculáte the ordėr point. b. Calčulate the économic order.quantily. Calçulate the totat prdering and carrying costs at EOQ point. a. C.

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
P3-3 Aeoni Laketown predicts that 10,000. unis' of matérials will be used during the year,
The expecled daily usage is 4o units, The expected lead time is 6 dáys and there iş a
sarety.stock of.300 unlts. Aepn expects that the cost of materláls will be P480 per unit. It.
anticipates that it will cost.P200.to.place each order. The annual carrying cost is P1,00 per.
unlt.
Required::
Calculáte the ordėr point.
b. Calčulate the économic order.quantily.
Calculate the total ordering and carrying cösts, at EOQ point.
a.
C.
CS Scanned with CamScanner
Transcribed Image Text:P3-3 Aeoni Laketown predicts that 10,000. unis' of matérials will be used during the year, The expecled daily usage is 4o units, The expected lead time is 6 dáys and there iş a sarety.stock of.300 unlts. Aepn expects that the cost of materláls will be P480 per unit. It. anticipates that it will cost.P200.to.place each order. The annual carrying cost is P1,00 per. unlt. Required:: Calculáte the ordėr point. b. Calčulate the économic order.quantily. Calculate the total ordering and carrying cösts, at EOQ point. a. C. CS Scanned with CamScanner
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Inventory Management
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.
Similar questions
  • SEE MORE QUESTIONS
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