EOQ with FIFO and LIFO valuation Bunda Motorcycle Company estimates that demand for its Sprint model motorcycle will be 1,200 units during 1993. Inventory carrying costs are estimated at 12 percent of product cost, and inventory ordering costs are $750 per order. Each motorcycle costs $1,500 and sells for $1,950. The company has 90 units on hand at the beginning of the year, costing a total of $130,500. Company policy is to determine the economic order quantity at the beginning of the year and to order this quantity whenever 20 units remain. Eollowing are weekly sales data taken from the company's sales journal for the first quarter of 1993:

On March 1, 1993 the company's supplier announced a price increase of $60 per unit. The company uses a perpetual inventory system.

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Date Units Jan. 1-7 9 8-14 13 16-21 18 22-28 18 29-4 12 Feb. 5-11 15 12-18 19 19-25 12 26-3 14 Mar. 4-10 19 11-17 21 18-24 20 25-31 10