Mr. Waleed is running furniture manufacturing business. He required raw material on regular basis. He uses the best suitable methods of purchasing of material. He tried to used preparation of inventor budgets, perpetual inventory system, just-in- time, ABC analysis but none of the above suited to his business. Once he had to stop his production, when he was using Just-In- Time purchasing method. One day Mr. Waleed explain all the cost details to his cost accountant as follows: The normal usage was 50 Units. In case of low demand his minimum usage was only 25 units. During high demand time Mr. Waleed used to purchase 75 units. Mainly he required two types of raw material like Material 1 and Material 2, His reorder quantity for Martial 1 was 300 Units & For Material 2 was 500 Units. His cost accountant told him that they need 40 Units as average. Mr. Waleed was very good at planning, but in case of emergency he used to wait 1 day for material 1 and 2 days for material 2 to get material. Likewise, Mr. Waleed instructed to store keeper that they should place reorder like 4 to 6 days & 2 to 4 days for material 1 and 2 respectively.

State the total of average and normal usage of raw material?

a.

65 Units

b.

75 Units

c.

100 Units

d.

90 Units

Find the total of re-order quantity of both the material:

a.

300 Units

b.

200 Units

c.

500 Units

d.

800 Units