The following is the summary of the receipts and issues of material in a Special Ice factory during December 2020. Prepare Store Ledger according to First in First Out Method. December 2020 Dec 1. Opening balance 500 units @ GH¢25 per unit Dec 3. Issue 70 units Dec 4. Issue 100 units Dec 8. Issue 80 units Dec 13. Received from supplier 200 units @ GH¢24.50 per unit Dec 14. Returned to store 15 units @ GH¢24 per unit Dec 16. Issue 180 units. Dec 20. Received from supplier 240 units @ GH¢24.75 per unit Dec 24. Issue 304 units. Dec 25. Received from supplier 320 units @ GH¢24.50 per unit Dec 26. Issue 112 units Dec 27. Returned to store 12 units @ GH¢24.50 per unit Dec 28. Received from supplier 100 units @ GH¢25 per unit
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The following is the summary of the receipts and issues of material in a Special Ice factory during December 2020. Prepare Store Ledger according to First in First Out Method.
December 2020
Dec 1. Opening balance 500 units @ GH¢25 per unit
Dec 3. Issue 70 units
Dec 4. Issue 100 units
Dec 8. Issue 80 units
Dec 13. Received from supplier 200 units @ GH¢24.50 per unit
Dec 14. Returned to store 15 units @ GH¢24 per unit
Dec 16. Issue 180 units.
Dec 20. Received from supplier 240 units @ GH¢24.75 per unit
Dec 24. Issue 304 units.
Dec 25. Received from supplier 320 units @ GH¢24.50 per unit
Dec 26. Issue 112 units
Dec 27. Returned to store 12 units @ GH¢24.50 per unit
Dec 28. Received from supplier 100 units @ GH¢25 per unit
b. Two components P, Q are used as follows.
Normal usage 1000 units per week each.
Re-ordering quantity P - 20,000 units
Q - 8,000 units
Re-ordering period P - 4 to 6 weeks
Q - 2 to 4 weeks
The minimum usage is 2000 units per week; with their maximum usage being 3000 units per week each.
You are required to calculate:
(i) Average Stock Level
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