St.

Vincent De Ferrer College Camarin

Department of Accountancy
Course Title Title
Module
CONCEPTUAL No. 7 Inventories
FRAMEWORK AND
ACCOUNTING Module Leader Mary Jane L. Estores
STANDARDS 1 /
INTERMEDIATE
Module
ACCOUNTING 1 Not Applicable
Contributors

Timeframe: You are expected to finish all the activities, assignments, and
assessments of this module on October 25, 2020, 11:59PM.

How to Complete this 1. View video lecture on Inventories, Inventory Cost Flow and Lower
module? of Cost and Net Realizable Value.
2. Complete the reading assignment on chapter 30-1 of the book
prescribed.
3. Participate in the activity in the google classroom.

Teaching Strategies

Introduction/Overview.
INTRODUCTION

This module aims to develop knowledge, skills, and attitude of the student in learning the
measurement and management of Inventories. This includes management decision on
inventory trade-off on keeping inventory levels on stock. This module is designed to
educate the minds of students on Inventory Management.
LEARNING OUTCOMES

Module Learning Outcomes

By the end of this module, you should be able to:

1. Explain the inventory trade-off.
2. Discovers how to maintain inventory at a level that best balances savings and costs.
3. Compute Economic Order Quantity

INVENTORY MANAGEMENT

Formulation and administration of plans and policies to efficiently and satisfactorily meet
production and merchandising requirements and minimize costs relative to inventories.
CONTENT

OBJECTIVE
To maintain inventory at a level that best balances the estimates of actual savings, the cost
of carrying additional inventory, and the efficiency of inventory control.

WHAT IS INVENTORY PLANNING? HOW IS ECO-NOMIC ORDER QUANTITY

COMPUTED?
INVENTORY PLANNING involved the determination of what inventory quality, quantity,
timing, and location should be in order to meet future business requirements.
 1. Watching EOQ Calculation in 5 min. How to calculate Economic Order Quantity Model or
ASSIGNMENT EOQ Model https://www.youtube.com/watch?v=A88uoWbxG2M

2. Reading Chapter 30-1 of Brealy,Myer Book

SAMPLE PROBLEM
The following information pertains to Emy Manufacturing Corporation’s Product X:

Annual Demand 33,750 units

Annual cost to hold one unit of inventory P15
ASSESSMENT

Understand inventory management through answering the problem assignment above.

RUBRICS

The student must have correct answers to assignment given.

ESREFERENC

Brealy,Myers, Allen. Principles of Corporate Finance, 10 th Ed.

Rocky River Woodworks. (2014, November 19). How to calculate Economic Order Quantity
Model or EOQ Model [Video file]. Retrieved from https://www.youtube.com/watch?
v=A88uoWbxG2M