Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 20, Problem 20.16E

1.

To determine

To calculate: The EOQ.

Given information:

Annual demand is 10,000 units per year

Ordering cost is $200 per order

Carrying cost is $7 per jersey.

2.

To determine

To compute: The number of order placed in a year.

Given information:

Annual demand is 10,000 units per year

EOQ is 756 units as calculated in part 1.

3.

To determine

To compute: The reorder point

Given information:

Annual demand is 10,000 units per year

Number of days in a year is 365

Purchasing lead time is 7 days

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His AGI is $41,000, he itemizes deductions, and his marginal tax rate is 15 percent.
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