PLEASE DO PART B Harper Enterprises has an average annual demand of 45,000 units for its main product line. The cost of setting up for one production run of its product is $520 and the cost of carrying one unit in inventory for one year is $7.49. Required: Use the economic-order-quantity model to determine the optimal order size. The answer to part a is 2,500 Calculate the TARC(Total annual relevent cost) for the EOQ calculated in part a. What is the answer to Part B?
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
PLEASE DO PART B
Harper Enterprises has an average annual demand of 45,000 units for its main product line. The cost of setting up for one production run of its product is $520 and the cost of carrying one unit in inventory for one year is $7.49.
Required:
- Use the economic-order-quantity model to determine the optimal order size.
The answer to part a is 2,500
- Calculate the TARC(Total annual relevent cost) for the EOQ calculated in part a.
What is the answer to Part B?
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