Chavez Chemical Inc. requires 20,000 gallons of material annu- ally; the cost of placing an order is

Question:

Chavez Chemical Inc. requires 20,000 gallons of material annu- ally; the cost of placing an order is $20; the annual carrying cost per gallon is $5.

Required:

Determine the EOQ from potential order sizes of 300, 400, 500, 600, 700, and 800 gallons by constructing a table similar to the one appearing on page71.

Chavez Chemical Inc. requires 20,000 gallons of material annu- ally;

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Principles of Cost Accounting

ISBN: 978-1133187868

16th edition

Authors: Edward J. Vanderbeck

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Question Posted: May 05, 2014 10:22 AM

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Chavez Chemical Inc. requires 20,000 gallons of material annu- ally; the cost of placing an order is

Question:

Order Number of Total Size Ave Total Carrying Total Order8 Orders Order Cost Inventory $1,000 Carrying Cost $1,040 100 100 S 40 100 300 150 120 25 410 400 410 160 500 170 140 800 110 470 1,000 10 100 500 500

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Order Size Number of Orders Total Order Cost Average Inventory Total Carrying ...View the full answer

Principles of Cost Accounting

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