When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2020: (i) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the selling price was $3.00 per litre. (ii) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, 4. ups the market price was $0.48 per kg. (iii) Spare parts that had cost $25,000: Mostly for production machinery sldslisve od bluow that was no longer in use, so it was unlikely they could be used. 9sw They have no resale value. (iv) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that Mercator could use it to repair their milling machine. 5ont ou bobean ti ar s0303

When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2020: (i) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the selling price was $3.00 per litre. (ii) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, 4. ups the market price was $0.48 per kg. (iii) Spare parts that had cost $25,000: Mostly for production machinery sldslisve od bluow that was no longer in use, so it was unlikely they could be used. 9sw They have no resale value. (iv) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that Mercator could use it to repair their milling machine. 5ont ou bobean ti ar s0303

Name: 4. When Mercator Manufacturing Inc. checked its stores, it had thefol
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Description: 4. When Mercator Manufacturing Inc. checked its stores, it had thefollowing inventory on hand as at December 31, 2020:(i) 5,000 litres of lubricating oil that had cost $2.50 per litre: As atDecember 31, the selling price was $3.00 per(ii) 50,000 kg

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the annual ordering cost. 2. Compute the annual carrying cost. 3. Compute the cost of Ottiss current inventory policy. Is this the minimum cost? Why or why not?
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When a Mercator manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2020: I) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the selling price was $3.0 per litre. II) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, the market price was $0.48 per kg III) spare parts that had cost $25,000: Mostly for production machinery that was no longer in use, so it was unlikely they could be used. They have no resale value IV) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that the Mercator could use it to repair their milling machine V) $20,000 of electronic parts that were in good working order but had gone beyond their "sell by" dates on the packages Required a) Show how the inventory would appear in the balance sheet as at December 31, 2020 b) If Mercator manufacturing sales for 2020 totalled $500,000,…
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