6. At the end of the period, the balance in the Materials account should represent

		the cost of materials purchased.
		the cost of materials on hand.
		the cost of materials issued into production.
		the cost of materials included in Work in Process and Finished Goods.

8. Murphy Company uses 2,000 yards of material each day to make hats. It usually takes five days from the time Murphy orders the material to when it is received. If Murphys desired safety stock is 6,000 yards, what is Murphys order point?

6,000 yards

8,000 yards

10,000 yards

16,000 yards

Question 36

The following data pertains to Western Companys materials inventory:

Number of pounds required annually 16,000

Cost of placing an order $20

Annual carrying cost per pound of material $4

What is Western Companys EOQ?

4,000 pounds

800 pounds

400 pounds

200 pounds

Question 37

On the Balance Sheet for a manufacturing company, the current assets would include the three inventory accounts Materials, Work in Process, and Finished Goods. True or False

2.

The inventory method which results in the prices paid for the oldest purchases being assigned to inventory on hand at the end of the period is:

		First-in, first-out.
		Last-in, first-out.
		Last-in, last-out.
		Moving average.