MID TERM pri 3033 Version Cast Access SectiG- Time Allowed: 1.5 hrs Total Market 50 01. Nishot mills predict that it will use 25.000 units of als during the year Expected daily wage i 200 units, Lead time is 5 days and safety stock should be 500 units Material costi pet wit c 50 to place each order. Annual carrying costs 5 0.10 per unit Compute order point. (1 mark) Compute ECO (2 marks) Calculate the total cost of ordering and carrying to point. (marks) 02. During May. the following transactions took place Purchased raw materials at a cost of $45.000 and general fac- tory supplies at a cost of $13,000 on account (recorded materi- als and supplies in the materials account). b. Issued raw materials to be used in production, costing $47.000. and miscellaneous factory supplies costing $15,000 lows: factory wages (including $12,000 indirect labor). S41,000; Recorded the payroll and the payments to employees as fol- a. and selling and administrative salaries, $7,000. Additional account titles include Wages Payable and Payroll. (Ignore pay- roll withholdings and deductions.) d. Distributed the payroll in (c). e. Recognized depreciation for the month at an annual rate of 5% on the building, 10% on the factory equipment, and 20% on the office equipment. The sales and administrative staff uses approximately one-fifth of the building for its offices. f. Incurred other expenses totaling $11,000. One-fourth of this amount is allocable to the office function. g. Transferred total factory overhead costs to Work in Process. h. Completed and transferred goods with a total cost of $91,000 to the finished goods storeroom. i. Sold goods costing $188,000 for $362,000. (Assume that all sales were made on account.) j. Collected accounts receivable in the amount of $345,000. k. Paid accounts pavable totalina S158.000. a. Prepare journal entries to record the materials transactions. (10 marks) Note that the Building value is 480,000 Factory & Office Equipment are 220,000 and 60,000 respectively