Show statement showing the pricing of issues, on the basis of (a) Simple Average and (b) Weighted Average methods from the following information pertaining to Material-D 2016 March 1 Purchased 100 units @ `10 each 2 Purchased 200 units @ ` 10.2 each. 5 Issued 250 units to Job X vide M.R.No.12 7 Purchased 200 units @ `10.50 each 10 Purchased 300 units @ `10.80 each 13 Issued 200 units to Job Y vide M.R.No.15 18 Issued 200 units to Job Z vide M.R.No.17 20 Purchased 100 units @ `11 each A company manufactures a special product which requires a component 'Alpha'. The following particulars are collected for the year 2015. 1. Annual demand of Alpha 8,000 units 2. Cost of placing an order ` 200 per order 3. Cost per unit of Alpha ` 400 4. Carrying cost % p.a. 20% The company has been offered a quantity discount of 4% on the purchase of 'Alpha' provided the order size is 4,000 components at a time. Required: (a) Compute the economic order quantity. (b) Advise whether the quantity discount offer can be accepted.The particulars relating to 1,200 kgs. of a certain raw material purchased by a company during June, were as follows:- Lot prices quoted by supplier and accepted by the Company for placing the purchase order : Lot upto 1,000 kgs. @ `22 per kg. Between 1,000 - 1,500 kgs, @ `20 per kg. Between 1500 -2000 kgs. @ `18 per kg. Trade discount - 20%. Additional charge for containers @ `10 per drum of 25 kgs. Credit allowed on return of containers, @ `8 per drum. Sales tax at 10% on raw material and 5% on drums. Total fright paid by the purchaser `240/- Insurance at 2.5% (on net invoice value) paid by the purchaser. Stores overhead applied at 5% on total purchase cost of material. The entire quantity was received and issued to production. The containers are returned in due course. Draw up a suitable statement to show :- (a) Total cost of material purchased and (b) Unit cost of material issued to production. From the details given below, calculate: (i) Re-ordering level (ii) Maximum level (iii) Minimum level (iv) Danger level Re-ordering quantity is to be calculated on the basis of following information: (a) Cost of placing a purchase order is ` 20 (b) Number of units to be purchased during the year is 5,000 (c) Purchase price per unit inclusive of transportation cost is ` 50 (d) Annual cost of storage per units is ` 5 (e) Details of lead time: Average 10 days, Maximum 15 days, Minimum 6 days. For emergency purchases 4 days (f) Rate of consumption: Average: 15 units per day, Maximum: 20 units per day. . Your factory buys and used a component for production at ` 10 per piece. Annual requirement is 2,000 numbers. Carrying cost of inventory is 10% p.a. and ordering cost is ` 40 per order. The purchase manager argues that as the ordering cost is very high, it is advantageous to place a single order for the entire annual requirement. He also says that if we order 2,000 pieces at a time we can get a 3% discount from the supplier. Evaluate this proposal and makes your recommendations 25 Issued 150 units to Job K vide M.R.No.25 [04/05, 2 A cast iron foundry is importing forged steel moulds for making its castings. The moulds are of four different sizes A,B,C and D and their CIF values are US $4,140; 4,160; 6,340, and 7,875 respectively. Customs duty may be assumed at 45% and clearing charges 5% of CIF value. The number of castings that can be made out of each mould it: A - 1,000 B - 2,000, C - 1,800 and D - 1,500. The weight of each casting out of A is 300 kg. B - 400 kg. C - 500 kg and D - 700 Kg. The casting suffer a normal rejection of 10%. You are required to calculate the average cost of mould per tonne of saleable casting. (For conversion assume US $ 1 = ` 8) . G Ltd. produces a product which has a monthly demand of 4,000 units. The product required a component X which is purchased at ` 20. For every finished product, one unit of component is required. The ordering cost is ` 120 per order and the holding cost is 10% p.a. You are required to calculate: Economic order quantity. If the minimum lot size to be supplied is 4,000 units. What is the extra cost, the company has to incur? What is the minimum carrying cost, the company has to incur? The management of XYZ Ltd. is worried about the increasing Labour Turnover in the factory and before analyzing the causes and taking remedial steps; they want to have an idea of the profit foregone as a result of Labour Turnover during the last year. Last year's sales amounted to `83, 03,300 and the profit/ volume ratio was 20%. The total number of actual hours worked by the direct Labour force was 4.45 lakhs. As a result of the delays by the Personnel department in filling vacancies due to Labour Turnover, 1,00,000 potentially productive hours were lost. The Actual Direct Labour hours included 30, 000 hours attributable to training new recruits, out of which, half of the hours were unproductive. The cost incurred consequent on Labour turnover revealed, on analysis the following. Settlement cost due to leaving: `43, 820 & Recruitment costs: `26,740. Selection costs: `12,750, & Training costs: `30,490 Assuming that the potential production lost as a consequence of Labour Turnover could have been sold at prevailing prices, find the profit foregone last year on account of Labour Turnover. From the following particulars, calculate the earnings of workers X and Y and also comment on the labour cost. Standard time allowed: 20 units per hour Normal time rate: `30 per hour Differential Rate to be applied: 80% of piece rate when below standard 120% of piece rate at or above standard In a particular day of 8 hours, X produces 140 units while Y produces 165 units. In a manufacturing concern the daily wage rate is `2.50. The standard output in a 6 day week is 200 units representing 100% efficiency. The daily wage rate is paid without bonus to those workers who show up to 66 2/3% of the efficiency standard. Beyond this there is a bonus payable on a graded scale as below:- 82% efficiency - 5% bonus 90% Efficiency - 9% bonus 100% efficiency - 20% bonus Further increase of 1% for every 1% further rise in efficiency. In a 6 day week A produced 180 units; B 164 units; C 200 units; D 208 units and E 130 units. Calculate the earnings of these workers.