Raja manufacturing company requires 2000 units of raw material per month. The ordering cost is ₹25 per order. The carrying cost, in addition to ₹3 per unit, also estimated to be 10% of the average inventory cost per unit
CS Executive · Cost and Management Accounting · PYQS · December 2020
Raja manufacturing company requires 2000 units of raw material per month. The ordering cost is ₹25 per order. The carrying cost, in addition to ₹3 per unit, also estimated to be 10% of the average inventory cost per unit per year. The purchase price of the raw material is ₹20 per unit. The Economic Order Quantity is :
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Material Costing
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