A service garage uses 204 boxes of cleaning cloths a year. The boxes cost $12 each. The cost to place one order is $15, and the cost to hold one box in inventory for a year is $2.40. Using this information, what is our total holding and ordering cost if we currently order 12 boxes at a time?
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A service garage uses 204 boxes of cleaning cloths a year. The boxes cost $12 each. The cost to place one order is $15, and the cost to hold one box in inventory for a year is $2.40. Using this information, what is our total holding and ordering cost if we currently order 12 boxes at a time?
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- Assume that Medina Co. makes footballs and is trying to determine the quantity of leather it should order every time an order is placed. The relevant information is as follows:a. over the course of a year 12,000 square meters of leather will be needed,b. the cost of storing 1 square meter of leather is $3 andc. the cost of placing an order is $450. What is the Economic Order Quantity?Tool Mart sells 1,400 electronic water pumps every year. These pumps cost $54.30 each. If annual inventory carrying costs are 12% and the cost of placing an order is $90. What is the firm's EOQ?A local electronic repair shop uses 15,000 units of mobile batteries each year. It costs RO 30 to place and receive an order. It cost of material is RO 15 per unit and carrying cost is 24% of the cost per unit. Calculate the Economic Order Quantity for the shop, number of orders and total inventory costs. 2. Beta Merchandising Company purchases mobiles directly from manufacturers and sells it to small retailers. The following transactions occurred during 2020: March, 21st: 80 mobiles on hand @ RO 40 each. May, 14th: 120 mobiles purchased @ RO 50 each. July, 10th: 80 mobiles purchased @ RO 60 each. September 16th: 50 mobiles purchased @ 80 each Alpha merchandising sold 300 mobiles during 2020 Required: Compute the Cost of Inventory sold during 2020 and the value of closing inventory under the following cost inventory methods. (a). First in, first out (FIFO) (b). Last in, first out (LIFO) (c) Average cost method