AUTO LIGTAS Company provided the following data about the inventory for the month of

January:

Units Unit cost Total cost

Jan. 1 Beginning 16,000 140 2,240,000
5 Purchase 4,000 150 600,000
10 Sale 15,000
15 Purchase 20,000 160 3,200,000
16 Purchase return 1,000 160 160,000
25 Sale 8,000
26 Sale return 4,000
31 Purchase 30,000 150 4,500,000

1) What is the total cost of the ending inventory using moving average method?
____________

2) What is the total cost of the ending inventory using weighted average method?
____________

3) What is the total cost of the ending inventory using FIFO method?
____________

Lester Gwapo Traders, Inc sells cellphone cases which it buys from a local
manufacturer. Lester Gwapo Traders sells 24,000 cases evenly throughout this
year. The cost of carrying one unit in inventory for one year is P11.52 and the
order cost per order is P38.40.

4. What is the economic order quantity? _______________

5. If Lester Gwapo Traders would buy in economic order quantities, the total
order cost is ___________

6. Awtsu Corp has the following data: EOQ is 14,400 units, carrying cost per unit
is P3.15 and ordering cost per order is P1,260.

Determine the annual estimated demand _________.

7. The EOQ model deals with determining the proper order size with respect to:

A) accounting cost and stock-out cost

B) order cost and stock-out cost
C) stock-out cost and carrying cost
D) order cost and carrying cost

8. The order cost per order of an inventory is P400 with annual carrying cost of
P10 per unit. The economic order quantity for annual demand of 2,000 units is
______

9. Earl Corp has the following data: EOQ is 14,400 units, Carrying cost per unit
P3.15 and ordering cost per order is P1,260. Determine the annual estimated
demand: ________

10. If EOQ is 360 units, ordering cost is P5 per order and the carrying cost is
P0.20 per unit, what is the usage in units? _______

****************************END OF QUIZ ****************************************

For the negative things we have to say to ourselves, God has the positive answers:

You say: “It’s impossible”, God says: All things are possible
(Luke 18:27)
You say: “I’m tired!” God says: I will give you rest (Mat 11:28-30)
You say: “I can’t go on!” God says: My grace is sufficient (2 Cor. 12:9)
You say: “I am afraid.” God says: I have not given you the spirit of fear (2 Tim 1:7)

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