PAPER 3: COST AND MANAGEMENT ACCOUNTING 1 four five
Total = 8% per annum Carrying cost per unit per annum = 8% of ` 50 = ` 4 per unit per annum (i) EOQ = )) = 0 4 uu` ` = 800 Kg (ii) Total Annual Inventory Cost Purchasing cost of 32,000 kg @ ` 50 per kg = ` 16,00,000 Ordering Cost g 0 g §· ¨¸u ©¹ ` = ` 1,600 Carrying Cost of Inventory s 4 s §· ¨¸uu ©¹ kg ` = ` 1,600 ................
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