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Determine the cost of carrying one bookcases

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Reference no: EM133033918

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Q1. A company incurred a cost of P200 per order for the trucking, delivery and relevant clerical cost, and annual carrying cost 20% of average inventory. Monthly usage at cost amount to P3, 000. What is the economic order to be placed each year?

Q2. The Magic Corporation has determined through an analysis of accounting data that the manufacturing cost per order of a raw material is P30. The company expects to use P60, 000 of this materials in the coming year. Its carrying charge is 10% of inventory. How many times should the raw material be ordered in the coming year?

Q3. Kiss Corporation buys baseballs with the following relevant data:

Purchase price per unit P 20

Cost per purchase order P 10

Annual baseballs requirement 36,000 units

Desired return on investment 10%

Rent, insurance, taxes, etc. P 0.40

Determine the economic order quantity.

Q4. Ruel V. Company manufactures bookcases. Set-up costs are P2.00. Mercury manufactures 4,000 bookcases evenly throughout the year. Using the economic order quantity approach, the optimal production run would be 2,000 bookcases. Determine the cost of carrying one bookcases.

Reference no: EM133033918

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