REQUIRED

(a)

(i) explain the terms 're-order level' and 're-order quantity'

(ii) list the factors which must be considered when determining the re-order level

(iii) from the data given below, calculate for component 697:

DATA

(a) re-order level

(b) re-order quantity

(c) minimum level

(d) average stock level Component 697 is one of thousands of items kept in the store of a manufacture Max. stock level set at Expected consumption, (per month)
Estimated delivery period Max.
Min.
Months Max. 4 Min. 2 Units 17000 3000 1600 Cost Accounting

(b) On 31 March, one of the shops within a retailing group was destroyed by fire. For insurance claim purposes, it is necessary to establish the value of the stock on hand at the time.
REQUIRED From the information given below, calculate the value of the stock. Present your answer in the form of statement showing how you have calculated the figure DATA Stock, at cost, 1 March $64200 During the period 1-31 March, the following transactions took place:
Goods received by shop from central warehouse (at cost)
Goods returned from shop to central warehouse (at cost)
Sales Goods returned by customers and refunds given The retail group works on an average mark-up 331/3 on cost ICMA, Fs•, Section A. Cost Accounting 1, May 1982.
a Foundation Stage.
$
34000 4200 52000 2400