Ralph Was in the Process of Completing the Quarterly Planning

question 96

Essay

Ralph was in the process of completing the quarterly planning for the purchasing department when a major computer malfunction lost most of his data.For direct material XXX he was able to recover the following:
Ralph purchases at the EOQ quantity level.Required:
Determine the annual demand, the cost of placing an order, the economic order quantity and the annual total costs of inventory.

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Definitions:

Observable Inputs

Inputs that are developed using market data, such as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use when pricing the asset or liability.

Level 2 Input

In fair value measurement, inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, such as using market-correlated data.

Level 2 Input

Inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, directly or indirectly, such as quoted prices for similar assets or liabilities.

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the outstanding loan.