Answer:
The journal entry to record the purchase raw material would include a debit to raw material of $79000 and credit to Raw materials of $109000..
Explanation:
Since the raw material is coming into the company, we have debit raw material and the opening balance is already there in the books of the business. hence raw materials increases.
Answer:
Please consider the explanation below
Explanation:
a.Optimal order quantity per order = √2CO / I
= √[2*1500Units*625 ]/ (130)
=√1875000/130
=120 units per order
b.Minimum total annual inventory costs
Annually orders = 1500 / 120
= 12.5 times
Ordering cost = 12.5*625 = $7812
carrying cost = 120 units *$130 = $15600
Total annual inventory cost = $23412
c.The number of orders per year
= Annual denand / Optimum oder
= 15000 U / 120
= 12.5 times
• d.The time between orders (in working days)
= 364 / 12.5 (considered one leave)
= 29.12 days
=29 days
The currency would deflate, though this never happens