Discount-Mart (see Problem 16.8), as part of its new Lean program, has signed a long-term contract with Specialty Lighting and w
ill place orders electronically for its halogen lamps. Ordering costs will drop to $.50 per order, but Discount Mart also reassessed its carrying costs and raised them to $20 per lamp.
a) What is the new economic order quantity?
b) How many orders will now be placed?
c) What is the total annual cost of managing the inventory with this policy?
a) What is the new economic order quantity?
b) How many orders will now be placed?
c) What is the total annual cost of managing the inventory with this policy?
1 answer:
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The necessary journal entries for October month are attached below in the image :
<h3>What do you mean by journal entries?</h3>All company transactions are documented in journal entries. Generally speaking, a transaction is any financial activity that has an effect on a business.
All the necessary journal entries are attached below:
Learn more about journal entries:
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