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  • 5th Sync Accounting For Materials 10-2-2020

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    Johaimah Macatanong
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    This document shows the costs of ordering different quantities of items to meet an annual demand of 50,000 units. It calculates the ordering costs, average inventory, total ordering costs, total carrying costs, and total costs for orders of 400, 1,000, 1,250, 2,000, 2,500, and 5,000 units. The total cost is lowest when ordering 1,250 units, with a total cost of $130,000.

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    5th Sync Accounting for Materials 10-2-2020

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    This document shows the costs of ordering different quantities of items to meet an annual demand of 50,000 units. It calculates the ordering costs, average inventory, total ordering costs, total carrying costs, and total costs for orders of 400, 1,000, 1,250, 2,000, 2,500, and 5,000 units. The total cost is lowest when ordering 1,250 units, with a total cost of $130,000.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views3 pages

    5th Sync Accounting For Materials 10-2-2020

    Uploaded by

    Johaimah Macatanong
    This document shows the costs of ordering different quantities of items to meet an annual demand of 50,000 units. It calculates the ordering costs, average inventory, total ordering costs, total carrying costs, and total costs for orders of 400, 1,000, 1,250, 2,000, 2,500, and 5,000 units. The total cost is lowest when ordering 1,250 units, with a total cost of $130,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 3

    Annual Demand Order Size No.

    of Orders Ordering Cost Total Ordering Cost Average Inventory


    A/B CxD B/2
    50,000.00 400 125 1,000.00 125,000.00 200
    50,000.00 1000
    50,000.00 1250
    50,000.00 2000
    50,000.00 2500
    50,000.00 5000
    50,000.00 10000
    Carrying Cost Per Unit Total Carrying Cost Total Cost
    FxG E+H
    25.00 5,000.00 130,000.00
    COMPANY NAME
    COMPANY LOGO

    Date Account Title/Description Debit Credit


    10/2/2020 Materials 500,000.00
    Accounts Payable 500,000.00
    (Purchase of 100k units
    of Raw Materials A)

    Prepared by:

    EMMANUEL CARIZON
    Accountant

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