Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Scenario You have been considered for appointment as an Assistant Management Accountant by MKL 5050 LLC, a manufacturer of electronic items which is based in

image text in transcribed
image text in transcribed
image text in transcribed
Scenario You have been considered for appointment as an Assistant Management Accountant by MKL 5050 LLC, a manufacturer of electronic items which is based in Abu Dhabi and one of your major task is to help review the costing techniques and methods in the company. In addition, you need to support management of MK 5050 LLC to apply and select the best inventory valuation methods and the best costing techniques suitable to the company to enable them meet the Accounting reporting standards in the UAE and to ensure that they are profitable. As part of your interview process, the HR Department of MKL 5050 LLC has outlined the following tasks for you to answer appropriately and enable them to decide whether you are the best candidate / applicant for the role of Assistant Management Accountant. The following tasks are outlined by the owner to enable her assess your competency to achieve your objectives as the new cost accountant for MKL 5050 LLC. Undertake further research and answer the tasks assigned to you appropriately. TASK 1 1.1 Using the diagram below, analyse the procedures used for ordering, receiving and issuing of materials from the inventory in MKL 5050 LLC (E2:2.1) (12 MARKS) DEPARTMENT REQUIRES NEW MATERIALS ORDERING AND PURCHASING PURCHASING DEPARTMENT Purchase Order Form SUPPLIER ACCOUNTS DEPARTMENT GOODS RECEIVING DEPARTMENT SUPPLIER Receipt GOODS RECEIVING DEPARTMENT with Delivery Note PURCHASING DEPARTMENT decale 1.2 MKL 5050 LLC has a holding costs of its inventory at a rate of 25% per annum and an inventory cost of AED 13,500,000.00. Calculate the cost of carrying or holding the inventory. (E2.2.2) (4 MARKS) 1.3 MKL 5050 LLC uses 200,000 kg of copper wires per annum and the cost to place each order is AED 10.00 whilst the cost of carrying per kg is AED 3.00. (E2:2.3) (4 MARKS) Required: Calculate the optimal Reorder Quantity: 1.4 Evaluate any three (3) methods to minimise inventory costs in MKL 5050 LLC. (E2:2.4)(3 MARKS X 3 = 9 MARKS)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

More Books

Students also viewed these Accounting questions

Question

Define and discuss one major role of advertising.

Answered: 1 week ago