Part 1 Prepare a statement of cost of goods manufactured. The data for the year that follow relate to BIG SWEETS Corporation. Raw Materials, January 1, 2016 $50,000 Raw Materials, December 31, 2016 46,000 Work in Process Inventory, January 1, 2016 30,000 Work in Process Inventory, December 31, 2016 33,000 Materials Purchases 180,000 Director Labor 577,600 Indirect Labor 27,000 Payroll Taxes Expense-Factory 19,900 Utilities 18,000 Repairs and Maintenance 13,800 Indirect Materials and Supplies 26,450 Insurance 6,000 Rent--Factory Building 15,500 Depreciation-Factory Equipment 9,000 Party Calculate the economic order quantity and the reorder point. The following information relates to material purchases for the Good Fortune Company Annual demand for material Cost to place an order Cost to carry an item Safety stock Lead time Daily usage Material x 100,000 lb $20.00 $10.00 800 lb 2 days 200 lb Instructions 1. Calculate the economic order quantity (EOQ) for material X 3. How many days late can an order be before the Good Fortune Company will run out of material X? 4. How many times during the year will the company have to place an order? Part 1 The Winchester Inc. purchases tennis balls at $20 per dozen from its suppliers. The Win chester will sell 34,300 dozens of tennis balls evenly throughout the year. The total cost to handle a purchase order is $10 The insurance, property tax and rent for each dozen tennis balls in the average inventory is $0.40. The company wants a 5% return on average inventory investment Required 1. Compute the economic order quantity