Question
QUESTION 2: A company operates a process in which no losses are incurred. The process account for last month, when there was no opening work-in-progress,
QUESTION 2:
A company operates a process in which no losses are incurred. The process account for last month, when there was no opening work-in-progress, was as follows:
Process account | |||
| $ |
| $ |
Cost arising | 624,000 | Finished output |
|
|
| (10,000 units) | 480,000 |
|
| Closing WIP (4,000 units) | 144,000 |
| 624,000 |
| 624,000 |
The closing work-in-progress was complete to the same degree for all elements of cost.
What was the percentage degree of completion of the closing work-in-progress? (Show your working)
QUESTION 3:
Data relating to one particular store's item are as follows:
Average daily issues: 70 units
Maximum daily issues: 90 units
Minimum daily issues: 50 units
Lead time for the replenishment of stock 11 to 17 days
Reorder quantity 2,000 units
Reorder level 1,800 units
What is the maximum stock level (in units) for this stores item? (show your working)
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