The following information relates to Unique Ltd for the year 2020: Annual Demand                                 408,375 unitsAnnual cost of Holding                      £1.50Annual cost of placing an order        £ 500 1. Calculate the EOQ 2. Calculate the average inventory 3. Calculate the total annual ordering cost   4. Calculate the total annual inventory cost (excluding the purchase cost)

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 1.3C
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The following information relates to Unique Ltd for the year 2020:

Annual Demand                                 408,375 units
Annual cost of Holding                      £1.50
Annual cost of placing an order        £ 500

1. Calculate the EOQ

2. Calculate the average inventory

3. Calculate the total annual ordering cost

 

4. Calculate the total annual inventory cost (excluding the purchase cost)

 

 

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