Manar Enterprises manufactures a product A. The following particulars are given for Material X used for producing product A for the year 2021 Monthly demand of 5000 units · Cost of placing an order OMR 75 · Annual carrying cost per unit OMR 125 Storage cost = 20 % • Normal usage 600 units per week • Maximum usage 700 units per week • Minimum usage 400 units per week · Reorder period 4 to 6 weeks Compute from the above: (а) ЕOQ (b) Reorder level, (c) Minimum level,

Manar Enterprises manufactures a product A. The following particulars are given for Material X used for producing product A for the year 2021 Monthly demand of 5000 units · Cost of placing an order OMR 75 · Annual carrying cost per unit OMR 125 Storage cost = 20 % • Normal usage 600 units per week • Maximum usage 700 units per week • Minimum usage 400 units per week · Reorder period 4 to 6 weeks Compute from the above: (а) ЕOQ (b) Reorder level, (c) Minimum level,

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sarah produces a product that passes through two processes, Process 1 and Process 2. Details of activities for the month of December, 2020 is as follows; Process 1 Process 2Material introduced (4,000 units) @GH₵200.00 - Material added - GH₵25,000.00Labour Costs (@GH₵400 per hour) 200hrs 600hrsOutput in units 3,500units…
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