Mika Corporation uses FIFO method to calculate the value of Inventory on hand on March 31 and
Question:
Mika Corporation uses FIFO method to calculate the value of Inventory on hand on March 31 and cost of goods sold during March.
Mar 1Beginning Inventory68 units @ P15.00 per unit
5Purchase140 units @ P15.50 per unit
9Sale94 units
11Purchase40 units @ P16.00 per unit
16Purchase78 units @ P16.50 per unit
20Sale116 units
29Sale62 units
1.Under periodic inventory method, how much will be the cost of the ending inventory?
2.How much is the cost per unit of the ending inventory?
3.Under periodic inventory method, how much is cost of goods sold?
4.Under perpetual inventory method, how much will be the cost of ending inventory?
A company, at the beginning of its January 1 fiscal year, reported a beginning inventory of 300 units at a cost of P100 per unit. Over the first quarter, the company made the following purchases:
January 15 purchase of 100 units at a cost of P130 = P13,000
February 9 purchase of 200 units at a cost of P150 = P30,000
March 3 purchase of 150 units at a cost of P200 = P30,000
In addition, the company made the following sales:
End of February sales of 100 units
End of March sales of 70 units
1.Under periodic inventory system, determine the weighted average cost per unit.
2.Under periodic inventory system, how much will be the cost of goods sold?
The Michigan Company provides the following selected data about its three service and two operating departments:
Production Dept1
Production Dept2
Service Dept 1
Service Dept 2
Overhead costs
200,000
267,000
180,000
105,000
Number of Employees
315
210
60
35
Square feet of space occupied
40,000
100,000
5,000
10,000
Hours of press time
15,000
30,000
0
0
Direct labor hours
10,000
20,000
0
0
Machine hours
50,000
60,000
The order and bases for allocating service department costs is given below:
SD1; allocation base is number of employees
SD2; Allocation base is space occupied
Assume that PD1 and PD2 both use direct labor hours for computing OH rate.
1.Using the Direct method of allocation, how much OH rate must be assigned to PD1?
2.Using the Step Method of allocation, how much OH rate must be assigned to PD2?
3.Using the Step Method, how much is the cost of SD1 to be allocated to PD2?
4.Using the Step Method, how much is the total OH cost of PD1 after allocation?
One of the products that Justine Corporation sells is "Extra Soft" floor mats. Justine's ordering costs related to the mat is P12.50 per order. The cost of carrying one mat for one year is P16.00. Justine sells 40, 000 of these mats evenly throughout the year.
1.What is the economic order quantity of Justine Corporation?
2.What are Justine's total ordering costs per year under economic order quantity?
3.and total carrying costs per year respectively at the economic order quantity?
4.how much is the total inventory cost under EOQ?
5.If, instead of following the EOQ, the company decided to place an order of 200 units per order, how much will be the total inventory cost?
A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units per working day). It costs P20 to place and receive an order. The shop orders in lots of 400 units. It cost P4 to carry one unit per year of inventory.
6.Calculate the current total annual ordering cost
7.Calculate the current total annual carrying cost
8.Calculate the current total inventory cost
9.Calculate the Economic Order Quantity
10.How much is the savings after imposing EOQ?
11.What is the reorder point assuming normal lead time of 3 days?
12.If you are expecting 2 days delay, how much is the safety stock?
13.If you are expecting 2 days delay, how much is the reorder point?
Products at ABC Manufacturing are sent through two production departments: Fabricating and Finishing. Overhead is applied to products in the Fabricating Department based on 150% of direct labor cost and P18 per machine hour in finishing. The following information is available about Job #297.
Fabricating
Finishing
Direct Materials
1590
580
Direct Labor Cost
?
48
Direct Labor Hours
22
6
Machine Hours
5
15
Overhead applied
429
?
1.What is the total cost of Job #297?
Expert Answer:
Ill go through each question and provide the solutions 1 Under periodic inventory method the cost of the ending inventory is calculated by adding the cost of the beginning inventory and purchases then ... View the full answer
