Job 007 requires $10,000 of direct materials, $4,000 of direct labor, 400 tons of material, 200 machine hours, two setups, ten inspection hours, and one design change. The manufacturing overhead cost pools and overhead rates in each pool follow:

       Cost Pool                                           Overhead Rate

Material handling..........................         $20/ton of material

Machine usage.............................         $40/machine hour

Machine setups.............................         $1,000/setup

Design changes............................         $2,000/design change

Inspection..............................      $50/inspection hour

Instructions:?Determine the cost of Job 007.

1. Aztec Company expects daily usage of 500 pounds of material
Inca, an anticipated lead time of seven days, and a desired safety
stock of 2,500 pounds.

a. Determine the order point.

2.Economic order quantity; order cost; carrying cost
Patriot Company predicts that it will use 360,000 gallons of
material during the year. The material is expected to cost $5 per
gallon. Patriot anticipates that it will cost $72 to place each order.
The annual carrying cost is $4 per gallon.
a. Determine the most economical order quantity by using the
EOQ formula.
b. Determine the total cost of ordering and carrying at the EOQ
point.

3. Prepare a journal entry to record each of the following materials
transactions:
                       a. Total materials purchased on account during the month
amounted to $200,000.
                       b. Direct materials requisitioned for the month totaled
$175,000.
                       c. Indirect materials requisitioned during the month totaled
$12,000.

                       d. Direct materials returned to the storeroom from the factory
amounted to $2,500.
                       e. Total materials returned to the vendor during the month
amounted to $1,800.
                        f. Payment during the month for materials purchases totaled
$165,000.

4. Mystic Manufacturing Company maintains the following accounts
in the general ledger: Materials, Work in Process, Factory
Overhead, and Accounts Payable. On June 1, the materials
account had a debit balance of $5,000. Following is a summary
of materials transactions for June:
1. Materials purchased, $23,750.
2. Direct materials requisitioned to production, $19,250.
3. Direct materials returned to the storeroom, $1,200.
4. Indirect materials requisitioned to production, $2,975.
5. Indirect materials returned to the storeroom, $385.
a. Prepare journal entries to record the materials transactions.
b. Post the journal entries to ledger accounts (in T-account
form).
c. What is the balance of the materials inventory account at
the end of the month?