Question
Premium Food Co. produced new flavour cookies. The following information is available on two main materials used for the product. Material X Material usage
Premium Food Co. produced new flavour cookies. The following information is available on two main materials used for the product. Material X Material usage 200-800 kg per month Material Y 100-500 kg per month Annual material usage 2,400 kg 3,600 kg Reorder period 3-5 month 2-4 month Price RM1.20 per kg Ordering cost RM2 per order Carrying cost RM0.80 per kg RM2.50 per order 25% on material price You are required to calculate the following below for material X and Y separately: a) Economic order quantity (EOQ) 20% on material price b) Reorder level c) Minimum stock level d) Maximum stock level e) Stock turnover (25 marks)
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Accounting concepts and applications
Authors: Albrecht Stice, Stice Swain
11th Edition
978-0538750196, 538745487, 538750197, 978-0538745482
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