Determine the eoq and average inventory


Please assist with the accounting assignment:

For supply item LK, Boatman Company has been ordering 125 units based on the recommendation of the salesperson who calls on the company monthly. A new purchasing agent has been hired by the company who wants to start using the economic-order-quantity method and its supporting decision elements. She has gathered the following information:

Annual demand in units         250
Days used per year              250
Lead time, in days                 13
Ordering costs                    $100
Annual unit carrying costs     $20

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

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Accounting Basics: Determine the eoq and average inventory
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