Question
The KMT Corporation determines the manufacturing cost per order of a raw material is P25. The company expects to use P50,000 of this material in
The KMT Corporation determines the manufacturing cost per order of a raw material is P25. The company expects to use P50,000 of this material in the coming year. Its carrying charge is 10% of inventory.
Can you determine the following?
1. Economic order quantity in pesos
2. Number of times the raw material be ordered in the coming year
3. Average inventory
4. Total relevant inventory costs at EOQ
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Financial Accounting Fundamentals With Connect Plus
Authors: John Wild
4th Edition
77785932, 978-0077785932
