M/S Tubes Ltd is the manufactures of picture tubes for T.V. The following are the details of

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M/S Tubes Ltd is the manufactures of picture tubes for T.V. The following are the details of their operations:

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Compute from the above (1) EOQ. If the supplier is willing to supply quarterly 1,500 units at a discount of 5% is it worth accepting?
(2) Maximum level of stock (3) Minimum level of stock (4) Reorder level

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Cost Accounting

ISBN: 9788131732076

1st Edition

Authors: V. Rajasekaran, R. Lalitha

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Question Posted: Jun 12, 2024 10:13 AM

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M/S Tubes Ltd is the manufactures of picture tubes for T.V. The following are the details of

Question:

Average monthly market demand: Ordering cost Inventory-carrying cost Cost of tubes Normal usage Maximum usage Minimum usage Lead time to supply 2,000 tubes Rs. 100 per order 20% p.a. Rs. 500 per tube 100 tubes per week 200 tubes per week 50 tubes per week 6 to 8 weeks

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Cost Accounting

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