subject is cost accounting

Illustration 1: i) New Life Limited uses material K for its regular production of smart soap. Annual demand of material "K" is 7,500kg which was purchased at GHC15.00 per kg of which 20% of the purchase price was spent to keep a kilogram of the material in store per annum. It cost GHC 65 to make an order. Lead time is 5 days and there are 250 working days in the year of this company. Required: (a) Determine the Economic Order Quantity of material "K" (b) What is the associated total inventory cost? (c) How often should an order be placed for material K"? (Optimum Order Cycle Time) ii) The demand of a company product is about 300,000 units per month. It was estimated that it cost GH4.8 to keep one unit of the product in stock for one year. The cost Accountant estimated that it will cost GH40 in administrative each time an order is to be placed Required: a) Calculate the economic order quantity