Maya Company reports the following amounts for the year ending on December 31, 2004: Merchandise Inventory, January 1, 2004 : $70,000 Cost of Transportation : $2,300 Invoice Cost of Merchandise Purchases : $195,000 Purchase Returns and Allowances: $4,650 Purchase Discounts Received: $3,500 Cost of Goods Sold: $158,700 Cost of merchandise returned by customers and restored to inventory: $17,300 Calculate the Merchandise Inventory, December 31, 2004.

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?