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Topic #3 Product Costing and the Production Environment

Materials Control_Seatwork

Application Problems:
Assuming that the number of units of materials required for a product Black Label annually is
150,000 pcs with an annual carrying cost per unit of inventory is P 12.50 and the cost of placing an
order is P 10. What is the economic order quantity?
What is the Economic Order Quantity?
How much is annual ordering cost? annual carrying cost?

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