FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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•The material DX is used uniformly throughout the year. The data about annual requirement, ordering cost and holding cost of this material is given below:
• Annual requirement: 3,400 units
• Ordering cost: OMR 15 per order
• Holding cost: OMR 0.70 per unit
•What will be the economic order quantity (EOQ) of material DX
a.
3817.254
b.
318.72
c.
381.72
d.
What will be the inventory turnover ratio?
3187.254
.......
Answer the Question based the data given below
Opening Stock |
25000 |
Closing Stock |
35000 |
Net purchases |
130000 |
Manufacturing expenses |
30000 |
a.
6
b.
5
c.
4.5
d.
4
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- Compute for the Economic order quantity, assuming the no of units of materials required annually 20,000 cost of placing the order P29.00, Annual Carrying cost of inventory P 5.4arrow_forwardE15.24) Economic order quantity For each of the following independent cases, use the EOQ equation to calculate the economic order quantity: Case A Case B Case C Annual requirement (in units) 13230 1681 560 Incremental cost per order $250 $40 $10 Annual carrying cost per unit $6 $20arrow_forwardPursuit Company produces two products: Bric and Brac. The following table summarizes the products' details and planned unit sales for the upcoming period: Bric : Sellingpriceperunit.............$25. Variablecostperunit $14. Planned unit sales volume . . . . . . 800,000 Brac: Sellingpriceperunit............. $30 Variablecostperunit $17. Planned unit sales volume. 400,000 Pursuit Company has total fixed costs of $ 10 million and faces a tax rate of 30% . (a)What is Pursuit Company's expected profit at the planned level of sales? (b)Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to break even? (c) Assuming a constant sales mix, what are the unit sales of Bric and Brac required for Pursuit Company to earn an after - tax income of $ 910,000?arrow_forward
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