Question
The Alpha Company uses 12,000 valves per year. Each valve costs P50. The Materials Department estimates that it costs P1,700 to order a shipment of
The Alpha Company uses 12,000 valves per year. Each valve costs P50. The Materials Department estimates that it costs P1,700 to order a shipment of valves and the Accounting Department estimates the carrying cost is 15 percent of the value of inventory. Determine the (a) EOQ.
a.2,232.38
b.2333.37
c.2,332.38
d.3,323.38
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
17th edition
007802577X, 978-0078025778
