The following information relates to stock item 007: Price of stock item 007 GHS20 per unit Cost of placing an order GHS15 Annual storage costs 3% of purchase price Monthly usage of 007 7,500 units per month The economic order quantity for 007 (to the nearest unit) is OA. 463 units B. 612 units OC. 1,604 units D. 2,121 units

The following information relates to stock item 007: Price of stock item 007 GHS20 per unit Cost of placing an order GHS15 Annual storage costs 3% of purchase price Monthly usage of 007 7,500 units per month The economic order quantity for 007 (to the nearest unit) is OA. 463 units B. 612 units OC. 1,604 units D. 2,121 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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10. XYZ has developed the following data from its Material A Safety stock Average (normally) daily use 280 240 180 1.000 200 Maximum daily use Minimum daily use EOQ Cost of placing an order Working days per year P20 250 days Lead time 6 days What is the average inventory?
From the following information you are required to calculate for each product : Re order level Maximum stock Minimum Stock Average Stock Product X Product Y Average consumption per week 500 500 Minimum requirement per week 250 250 Maximum usage per week 750 750 EOQ 3,000 5,000 Replacement time 4 to 6 weeks 2 to 4 weeks
Given the following informations annual sales in units 30,000 cost of placing an order $60,00 per unit carrying costs $ 1.50 Existing units of safety stock 300 a what is the EOQ? b. what is the average inventory based on the EOQ and the existing safety stock c. what is the maximum level of inventory? d. how many orders are placed each year?
From the following information calculate the Maximum stock level, Minimum stock level, Re-ordering level and Danger stock level: Average consumption 330 units per day Maximum consumption 420 units per day Minimum consumption 240 units per day Re-order quantity 3,600 units Re-order period 10 to 15 days Emergency Re-order period 12 days
Find out cost of Goods sold and Sale price per unit in Rs. from the following information. Show your computations mathematically. Opening stock ? Average inventory 1, 80,000 Direct Expenses 150% of closing stock Purchases 3, 20,000 Returns outwards 40,000 Units sold 1010 Closing stock is three times the opening stock. Gross profit margins are 16.67% on sales value.
Joel Brown & Associates Limited produces and sells two products, vita 120 and vita 220. The following table provides information on the sales forecast for 2018: Sales Forecast Product Qrt1 Qrt2 Qrt3 Qrt4 Total Vita 120 5,000 6,000 4,800 5,500 21,300 Vita220 6,500 4,600 5,400 6,200 22,700 Notes: It is the company policy to have stock on hand at the end of each quarter equalling to 10% of sales for the next quarter. Budgeted sales for the first quarter of 2019 were: 7,000 units for Vita 120 and 5, 800 units for Vita 220 During 2016, the company sold one unit of Vita 120 for $600 and one unit of Vita 220 for $700 Opening inventory for the first quarter of 2018 was 320 units of Vita 120 and 420 units for Vita 220 To make one unit of Vita 120 four (4) units of raw material B20 is required while five (5) units of raw material B12 is required to make one unit of Vita 220. Prepare the sales budget Prepare the…
Malaika Ltd buys and sells product Q-3. It values sock on the basis of last in first out (LIFO). At 1 June 2021, stock in hand consisted of 4,500 units which were acquired at Sh.50 per unit. The operations for the month were as follows: Date Purchases Sales June1 5,000 @ Sh 48 4 6,000 @ Sh 60 5 5,500 @ Sh 49 7 4,000 @ Sh 50 11 7,000 @ Sh 61 12 5,000 @ Sh 50 13 6,000 @ Sh 47 18 7,000 @ Sh 62 19 8,000 @ Sh 64 20 6,000 @ Sh 49.50 21 5,000 @ Sh 65 22 7,000 @ Sh 50 25 6,000 @ Sh 49 26 2,000 @ Sh 47 28 500 @ Sh 60 29 14,000 @ Sh 64 The company incurred operating costs of Sh 450,000 during the month. Required: a) Stores ledger card b) Closing stock valuation
An organizations stock records show the following transactions for a specific item during last month: The inventory at the beginning of the month was 100 units values at GHC40000. During the month, it received 250 units into the warehouse and issued 150 units into production valued at GHC61000. Using the FIFO method, the purchase price during the period was? A. GHC400 per unit B. GHC420 per unit C. GHC450 per unit D. GHC480 per unit Reset Selection
Given the following information: Annual sales in units 40,000 Cost of placing an order $58.00 Per-unit carrying costs $2.30 Existing units of safety stock 600 What is the EOQ? Round your answer to the nearest whole number. units What is the average inventory based on the EOQ and the existing safety stock? Use the rounded value of the EOQ from the previous question in your calculations. Round your answer to the nearest whole number. units What is the maximum level of inventory? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. units How many orders are placed each year? Use the rounded value of the EOQ from the previous questions in your calculations. Round your answer to the nearest whole number. orders per year
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