Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
15th Edition
ISBN: 9780133781106
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
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Chapter 20, Problem 20.18E

1.

To determine

To calculate: The EOQ.

Given information:

Annual demand is 26,400 yards per year

Ordering cost is $165 per order

Carrying cost is $1.8 per unit per annum (working notes)

2.

To determine

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

Given information:

Annual demand is 26,400 yards per year

EOQ is 2,200 units as calculated in part 1.

3.

To determine

To compute: The reorder point

Given information:

Annual demand is 26,400 yards per year

Number of weeks in a year is 50.

Purchasing lead time is 2 weeks

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Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)

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