$1.$ The Reddog Company predicts that $3,200$ units of material will be used during the year. The expected

daily usage is $15$ units, there is an expected lead time of $10$ days, and there is a safety stock of $200$

units. The material is expected to cost $$4$ per unit. It is estimated that it will cost $$25$ to place each

order. The annual carrying cost is $$1$ per unit.

a$.$ Compute the order point.

b$.$ Determine the most economical order quantity by use of the formula.

c$.$ Compute the total cost of ordering and carrying at the EOQ point.

$2.$ The materials account of the Flynn Company reflected the following changes during May:

Balance, May $1500$ units @ $$10$

Received, May $5300$ units @ $$12$

Issued, May $10400$ units

Received, May $15200$ units @ $$15$

Issued, May $25300$ units

Assuming that Flynn Company maintains perpetual inventory records, calculate the ending inventory at

May $31$ and the cost of the units issued in May using each of the following methods:

$($a$)$ First in$,$ first out $($FIFO$)$

$($b$)$ Last in$,$ first out $($LIFO$)$

$($c$)$ Moving average