Cost Management Accounting

1. The inventory costing method that is based on the assumption that cost should be charged against revenue in the order in which they were incurred. A. FIFO B. LIFO C. AVCO D. Standard Price 2. The inventory costing method that charges the most recent costs incurred against revenue A. FIFO B. LIFO C. AVCO D. Standard Price 3. The following units of a particular item were purchased and sold during the period: What is the cost of the 35 units on hand at the end of the period as determined under the perpetual inventory system by the LIFO costing method? A. 715 B. 700 C. 705 D. 805 4. The following units of a particular item were purchased and sold during the period: What is the per unit cost of the 35 units on hand at the end of the period as determined ander the periodic inventory system by the FIFO costing method A. 20 B. 21 C. 22 D. 23 5. If the merchandise inventory is being valued at cost and the price level is steadily rising. the method of costing that will yiek the highest net income is: A. LIFO B. FIFO C. AVCO D. Standard Price Use the following information to answer questions 68 Normal usage: 100 units per day Maximum usage: 130 units per day Minimum usage: 70 units per day Economic Order Quantity 5000 units Re-order Period: 25 to 30 days 6. Calculate is the re-order level? A. 700 units B. 130 units C. 3900 units D. 3250 units 7. Calculate the minimum level. A. 3900 units B. 1150 units C. 3250 units D. 7150 units 8. Calculate the Maximum level A. 3900 units B. 1150 units C. 3250 units D. 7150 units 9. If the weekly demand for company TX ltd is 240 units, number of weeks per year 52 weeks, and ordering cost $50 and holding cost is $3 per year. Calculate the EOQ for TX Itd. A. 645 units B. 240 units C. 89 units D. None of the above 10. If demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then economic order quantity will be A. 678 packages B. 648 packages C. 658 packages D. 668 packages Charlie's Chocolate Factory trades in chocolates and made the following purchases and sales in the period. There are 10 units left at balance sheet date. Calculate the cost of stock using FIFO, LIFO, and weighted average cost formulae. (20 marks) [Question 2] The following data relates to an item of raw material NB: Assume that each year consists of 52 working weeks of 7 days per week Calculate: i)ii)iii)iv)TheminimumlevelThereorderlevelThereorderquantityThemaximumleadtime(2marks)(2marks)(4marks)(2marks)