The Heaven & Earth Company made the following material purchases and issues during January: Date Jan...
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The Heaven & Earth Company made the following material purchases and issues during January: Date Jan 01 Date Balance on hand 03 Issued to production 05 Purchased 06 Issued to production Details Jan 10 11 Details Issued to production Factory returned to the store room that were issued 10th 15 Purchased 20 Returned to vendor from Jan 15th purchases 26 Issued to production Receipts 500 units at P4.50 Receipts 10 units 500 units at P5.00 Issues 250 units 150 units Issues 110 units 300 units 100 units Balance 1,000 units at P4 Balance Compute the cost of materials used and materials ending inventory using (a) FIFO and (b) averag under periodic inventory and perpetual inventory systems. The following relates to The Raindrops Company for the current year (assume that the units will be required evenly throughout the year): 60,000 P 800 Total Carrying cost per year P1,200 Required: (1) Using the tabular form, compute the total cost of placing an order and total carrying cost at (a) 5,000 units; (b) 10,000 units; (c) 20,000 units; (d) 40,000 units; and (e) 60,000 units. (2) Using the formula, prove the correctness of tabular method (1). Units required for the year Cost of placing an order The Nicole Company has obtained the following costs and other data pertaining material X: Order Quantity 3,500 units Normal use per day 500 units Maximum use per day 600 units Minimum use per day 100 units Lead time 5 days Required: Compute for (1) safety stock (maximum); (2) order point; (3) normal maximum inventory, and (4) absolute maximum inventory. The Heaven & Earth Company made the following material purchases and issues during January: Date Jan 01 Date Balance on hand 03 Issued to production 05 Purchased 06 Issued to production Details Jan 10 11 Details Issued to production Factory returned to the store room that were issued 10th 15 Purchased 20 Returned to vendor from Jan 15th purchases 26 Issued to production Receipts 500 units at P4.50 Receipts 10 units 500 units at P5.00 Issues 250 units 150 units Issues 110 units 300 units 100 units Balance 1,000 units at P4 Balance Compute the cost of materials used and materials ending inventory using (a) FIFO and (b) averag under periodic inventory and perpetual inventory systems. The following relates to The Raindrops Company for the current year (assume that the units will be required evenly throughout the year): 60,000 P 800 Total Carrying cost per year P1,200 Required: (1) Using the tabular form, compute the total cost of placing an order and total carrying cost at (a) 5,000 units; (b) 10,000 units; (c) 20,000 units; (d) 40,000 units; and (e) 60,000 units. (2) Using the formula, prove the correctness of tabular method (1). Units required for the year Cost of placing an order The Nicole Company has obtained the following costs and other data pertaining material X: Order Quantity 3,500 units Normal use per day 500 units Maximum use per day 600 units Minimum use per day 100 units Lead time 5 days Required: Compute for (1) safety stock (maximum); (2) order point; (3) normal maximum inventory, and (4) absolute maximum inventory.
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1 Heaven Earth Company Materials Purchases and Issues a FIFO Method under Periodic Inventory System Date Details Receipts Issues Balance Jan 01 Balanc... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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