Expected annual usage of a particular raw material is (2,000,000) units, and the standard order size is

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Expected annual usage of a particular raw material is $2,000,000$ units, and the standard order size is 10,000 units. The invoice cost of each unit is $\$ 500$, and the cost to place one purchase order is $\$ 80$.

Required:

Determine:

(1) The average inventory.

(2) The estimated annual order cost.

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Cost Accounting For Managerial Planning Decision Making And Control

ISBN: 9781516551705

6th Edition

Authors: Woody Liao, Andrew Schiff, Stacy Kline

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Question Posted: May 17, 2024 08:01 AM

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Expected annual usage of a particular raw material is (2,000,000) units, and the standard order size is

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Cost Accounting For Managerial Planning Decision Making And Control

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