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pentagon [3]
3 years ago
7

In an inventory control system, the annual demand is 12,000 units, the ordering cost is GHS 30 per order and the inventory holdi

ng cost is GHS 3.00 per year. The order quantity is 1000 units and the cost per unit of the item is GHS 150. What is the total cost per year?
Business
1 answer:
Fittoniya [83]3 years ago
5 0

Answer:

Total cost per year = $1,801,860

Explanation:

Given:

Annual demand = 12,000 units

Ordering cost = $30 per order

Inventory holding cost = $3 per year

Order quantity = 1000 units

Cost per unit of the item = $150

Find:

Total cost per year

Computation:

Total cost per year = Purchase cost + Order cost + Inventory holding cost

Total cost per year = [12,000 x 150] + [12,000/1000 x 30] + [1,000/2 x 3]

Total cost per year = 1,800,000 + 360 + 1500

Total cost per year = $1,801,860

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4 years ago
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2 years ago
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Answer:

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3 years ago
For each of the following independent manufacturing situations,indicate whether job-order or process costing is more appropriate
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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
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