The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current information for the Duerr Company follows: Beginning raw materials inventory $28,000
Ending raw materials inventory 31,000
Raw material purchases 105,000
Beginning work in process inventory 40,000
Ending work in process inventory 50,000
Direct labor 130,000
Total factory overhead 105,000
Beginning finished goods inventory 80,000
Ending finished goods inventory 60,000
The company's cost of raw materials used, cost of goods manufactured and cost of goods sold is:.
A. Cost of Materials Used Cost of Goods Manufactured Cost of Goods Sold
$105,000 $327,000 $307,000
B. $100,000 $327,000 $342.000

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?