A factory produces 500 units of a product per week. Consumption of raw material is 8 kg for one(1) unit of the product. Purchase price of raw material is ₹130 per kg. Cost of placing an order is ₹2,250 and the carrying c
CS Executive · Cost and Management Accounting · PYQS · December 2021
A factory produces 500 units of a product per week. Consumption of raw material is 8 kg for one(1) unit of the product. Purchase price of raw material is ₹130 per kg. Cost of placing an order is ₹2,250 and the carrying cost is 20 percent per annum. Assuming 52 weeks in a year, the Economic Order Quantity will be :
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Inventory Management
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