QUESTION 34 The cost accounting department has asked you to check their EOQ figures. You have...

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Answer 1

Answer #1

ANNUAL HOLDING COST = (3280 / 2) * 1.25 = 2050

ANNUAL ORDERING COST = (16430 / 3280) * 120 = 601.1

PRODUCT COST = 16430 * 5 = 82150

TOTAL COST = AHC + AOC = 2050 + 601.1 + 82150 = 84,801.1

Answer 2

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