• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

accounting for inventories

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › accounting for inventories

  • This topic has 6 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
    Posts
  • May 5, 2017 at 6:50 am #384908
    fatezalez
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    the demand for a product is 12,500 units for a three-month period.Each unit of the product has a purchase price of $15 and the ordering cost are $20 per order placed.The annual holding cost of one unit is 10% of it’s purchase price.

    what is the (EOQ) to the nearest unit?

    May 5, 2017 at 7:20 am #384911
    fatezalez
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    how do you solve that sir

    May 5, 2017 at 2:26 pm #384944
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Firstly, you have posted this in the F3 forum, but it is not examinable in Paper F3 – only in Paper F2!!
    Assuming that you were meaning F2, then you use the EOQ formula that is given on the formula sheet!!!

    I suggest that you watch my free lecture on inventory control – the lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.

    In the formula D = 4 x 12,500 = 50,000 per year; Co = $20; and Ch = 10% x $15.

    You must have an answer in the same book in which you found the question, and so in future you should ask about whatever it is in the answer that you are not clear about and then I will help you.

    May 5, 2017 at 6:49 pm #384985
    fatezalez
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    sir,thanks very much i was to post in f2 tutor forum but i admit i did a mistake.
    D=4×12,500
    am not getting where four is coming from because they said 3month period.

    please help

    May 5, 2017 at 8:17 pm #384993
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    D in the formula for the EOQ is the annual demand – i.e. the demand over a year.

    If the demand is 12,500 over three months, then the demand over a year is 4 x 12,500, because there are 12 months in a year, which is 4 times 3 months.

    May 6, 2017 at 2:01 pm #385092
    fatezalez
    Member
    • Topics: 2
    • Replies: 4
    • ☆

    thanks sir,you really opened my eyes.

    May 6, 2017 at 5:11 pm #385110
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 7 posts - 1 through 7 (of 7 total)
  • The topic ‘accounting for inventories’ is closed to new replies.

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023
  • Jarzin on The Finance Function in the Digital Age – CIMA E1
  • dkessilfie on FM Chapter 1 Questions – Financial management objectives
  • ahmadhoney on ACCA Advanced Audit and Assurance (AAA) The Audit Report 3: Types of Audit Report

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in