Raw material data for the month of August:

Purchases Issued to Production in units

DATE
Units Price
Beginning Balance 10,000 10.00
Aug 2 6,000
4 50,000 10.50 30,000
10 5,000
12 60,000 9.50
18 20,000
20 10,000
22 20,000 11.00
25 40,000 10.80 5,000
27 30,000
30 20,000

What is the total cost of raw material on August 31 using:

1. FIFO Method
2. Weighted Average Method
3. LIFO Method

What is the cost of RM issued to Production using:

1. FIFO Method
2. Weighted Average Method
3. LIFO Method

Fan Base (FB) operates a megastore featuring sports merchandise. It uses EOQ decision model to make inventory
decisions. It is now considering inventory decisions for its Los Angeles Galaxy soccer jerseys product line. This is a
highly popular item. Data for 2023 are as follows:

Expected annual demand for Galaxy Jerseys 10,000

Ordering Cost per purchase Order P200
Carrying cost per year P7/jersey

Each jersey costs FB P40 and sells for P80. The P7 carrying cost per jersey per year comprises the required return on
investment of P4.80 (12% x P40 purchase price) plus P2.20 in relevant insurance, handling, and theft-related costs.
The purchasing lead time is 7 days and requires a safety stock of 100 jerseys. FB is open 365 a year. (Include in your
answer the unit of measure)
Required (5points each):
1. Calculate EOQ.
2. Calculate the number of orders that will be placed each year.
3. Calculate the reorder point.
4. Disregarding the safety stock, what is the relevant total cost (RTC)?