calculate the economic order quantity EOQ of the raw materials B) calculate the total cost of both holding and ordering at this re order quantity

 

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5. A wholesaler had the following receipts and issues in May 2020. On May 1, balance brought forward were 800 units valued at K2,400,000 Date Receipts Mayy 6 Issues 400 Cost per Unit (K) May 10 600 3,500 May 12 400 May 20 600 4,000 May 24 400 May 27 400 You are required to complete a stores ledger card using the LIFO; FiFo and weighted average price methods. Lisa Limited uses 20,000 kg of a raw material evenly over a period of one year. The material is purchased for K250 per kg, the cost of placing an order with the supplier is K6,000 and the cost of holding 1kg of the material in Inventory for one year is 15% of the purchase price. Required a. Calculate the economic order quantity (EOQ) of the raw material. b. Calculate the total cost of both holding and ordering at this re-order quantity. 5. A wholesaler had the following receipts and issues in May 2020. On May 1, balance brought forward were 800 units valued at K2,400,000 Date Receipts Mayy 6 Issues 400 Cost per Unit (K) May 10 600 3,500 May 12 400 May 20 600 4,000 May 24 400 May 27 400 You are required to complete a stores ledger card using the LIFO; FiFo and weighted average price methods. Lisa Limited uses 20,000 kg of a raw material evenly over a period of one year. The material is purchased for K250 per kg, the cost of placing an order with the supplier is K6,000 and the cost of holding 1kg of the material in Inventory for one year is 15% of the purchase price. Required a. Calculate the economic order quantity (EOQ) of the raw material. b. Calculate the total cost of both holding and ordering at this re-order quantity.