Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rekha limited produces 4,000 litres of paints on q

Rekha limited produces 4,000 litres of paints on quarterly basis. Each litre requires 2 kg...

80.2K

Verified Solution

Question

Accounting

Rekha limited produces 4,000 litres of paints on quarterly basis. Each litre requires 2 kg of raw material. The cost of placing one order for raw material is Rs.40 and the purchasing price of raw material is Rs.50 per kg. The storage cost is 2% per quarter.Calculate Economic Order Quantity and Total Annual Inventory Cost in respect of the above raw material.The Purchase manager suggests that it would be beneficial to place an order for 1000 kg of raw material every time. You are required to assess his opinion and give your advice on the same.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

You are asked to study the determinants of job satisfaction at your new company. After randomly...

Psychology
1.2K views

Piaget believed that we reach the apex of cognitive ability during late adolescence when we achieve...

Electrical Engineering
1.2K views

Consider a silicon crystal whose band gap energy is Eg=1.124eVE_g = 1.124 eVEg​=1.124eV and is kept...

Physics
1.2K views

A Wave front moves 1 64 m in 4 00 s What is the speed...

Geometry
1.2K views

1 point Kris has 3 daughters who all live in different cities across Georgia She...

Basic Math
1.2K views

4 24 Draw the shear and moment diagrams for the bea A 2k 2k 4...

Algebra
1.2K views

The concentration of a drug in a patient s bloodstream after t hours is modeled...

Accounting
1.2K views

Calculation of Market Measures The comparative income statement and balance sheet of Cowan Kitchen Counters,...

Accounting
1.2K views

Jett Company is considering purchasing a new machine that will cost $360,000. The machine would...

Accounting
1.2K views

How do you calculate budgeted fixed overhead per month if a company is operating at...

Accounting
1.2K views

Premium Amortization On the first day of the fiscal year, a company issues a $7,100,000,...

Finance
1.2K views

D Question 1 2 pts What makes EETC ratings better than the issuing airline credit...