1. Jabrex Company purchases raw materials at a cost of $18 per unit. The annual demand for raw materials is 66,000 units. The holding cost per unit is $7.20 and the cost of placing an order is $33. Calculate Economic Order Quantity (EOQ) using the formula approach

Select one:

a. 575 units

b. 778 units

c. 229 units

d. 492 units

2. The record of receipts and issues for a cement factory for the month of November 2021 are as follows

1 Nov Beginning balance 30 tons, $90 per ton.

4 Nov Issued 8 tons.

9 Nov Received 50 tons, $85 per ton.

13 Nov Issued 18 tons.

17 Nov Issued 23 tons.

23 Nov Received 20 tons, $92 per ton.

28 Nov Issued 22 tons.

Calculate the ending balance in value ($) of cement as at 30 November 2021, using First-In-First-Out (FIFO) method.

a ,840

b. $765

c. $2,265

d. $2,605

3. Legacy Company Ltd has determined that 1 unit of its product requires 1.5 hours of direct labor in the assembly department and 1 hour in the finishing department. Assemblers are paid $8.00 per hour and finishers are paid $9.00 per hour. Determine the standard labour cost of one unit.

Select one:

a. $17.00

b. $22.50

c. $20.00

d. $21.00