i) Economic Order Quantity (EOQ) and Cost Analysis:

1. Calculate EOQ:

   EOQ=2×D×SH\text{EOQ} = \sqrt{\frac{2 \times D \times S}{H}}EOQ=H2×D×S​​Where:

   • $D=6,000$ bags (Annual Demand)
   • $S=GH¢7.7$ (Ordering Cost)
   • $H=10\%\times GH¢360=GH¢36$ (Holding Cost)

   EOQ=2×6,000×7.736≈51.67 bags (rounded up to 52 bags)\text{EOQ} = \sqrt{\frac{2 \times 6,000 \times 7.7}{36}} \approx 51.67 \text{ bags (rounded up to 52 bags)}EOQ=362×6,000×7.7​​≈51.67 bags (rounded up to 52 bags)

2. Total Material Cost Using EOQ:

   $$\text{Total Cost}=\text{Purchase Cost}+\text{Ordering Cost}+\text{Holding Cost}$$ Total Cost=(6,240×360)+(6,24052×7.7)+(522×36)\text{Total Cost} = (6,240 \times 360) + \left(\frac{6,240}{52} \times 7.7\right) + \left(\frac{52}{2} \times 36\right)Total Cost=(6,240×360)+(526,240​×7.7)+(252​×36) $$\text{Total Cost}=2,246,400+924+936=GH¢2,248,260.00$$

3. Total Material Cost if Foreign Supplier’s Offer is Accepted:

   Total Cost=(6,000×0.92×360)+(6,0003,000×7.7)+(3,0002×0.92×36)\text{Total Cost} = (6,000 \times 0.92 \times 360) + \left(\frac{6,000}{3,000} \times 7.7\right) + \left(\frac{3,000}{2} \times 0.92 \times 36\right)Total Cost=(6,000×0.92×360)+(3,0006,000​×7.7)+(23,000​×0.92×36) $$\text{Total Cost}=1,987,200+15.4+49,680=GH¢2,036,895.40$$

Decision: It is advisable to accept the order from the foreign supplier because it results in cost savings of GH¢211,364.60 (GH¢2,248,260.00 – GH¢2,036,895.40).

ii) Difference between a Bin Card and a Store Ledger Card:

1. Bin Card: A bin card is a record kept in the store that shows the quantity of inventory for each item. It records the receipts and issues of inventory but does not include valuation. It is usually maintained by the storekeeper.
2. Store Ledger Card: A store ledger card is maintained by the cost accountant and records both the quantities and values of receipts, issues, and the balance of inventory items. It provides a complete financial record of inventory movement.