The components M1 and M2 are used in the manufacture of an article. The following. data relate to the components, Minimum usage: 25 units.per week each Maximum usaģe: 75 units per week each Reorder' period: M1 -'4 to 6 weeks M2 - 2 to 4 weeks Maximum level : M1 - 650 units M2 - 750 units Calculate for each component: a) Reorder level b) Minimum. level c) Reorder guantitý and d) Average stock level

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 21E: The Converting Department of Tender Soft Tissue Company uses the weighted average method and had...
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The components M1 and M2 are used in the manufacture of an article.
The following. data relate to the components,
Minimum usage: 25 units.per week eạch
Maximum usage: 75 units per week each
Reorder period: M1 -4 to 6 weeks
M2 - 2 to 4 weeks
Maximum level : M1 - 650 units
· M2 - 750 units
Calculate for each component: a) Reorder level b) Minimum. level
c) Reorder quantity and d) Average stock level
Transcribed Image Text:The components M1 and M2 are used in the manufacture of an article. The following. data relate to the components, Minimum usage: 25 units.per week eạch Maximum usage: 75 units per week each Reorder period: M1 -4 to 6 weeks M2 - 2 to 4 weeks Maximum level : M1 - 650 units · M2 - 750 units Calculate for each component: a) Reorder level b) Minimum. level c) Reorder quantity and d) Average stock level
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