Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

State THREE (3) valuation method for inventory. (3 marks) Super Cookies Sdn Bhd produces Almond Chocolate cookies. The management recognizes the need to maintain an

image text in transcribed
State THREE (3) valuation method for inventory. (3 marks) Super Cookies Sdn Bhd produces Almond Chocolate cookies. The management recognizes the need to maintain an efficient stock procurement and stock control system to avoid stock out or excess stock problem. The production Almond Chocolate cookies is between 200 to 500 units of chocolate bar per week. Each bar of Almond Chocolate cookies 500 grams of cocoa powder. Currently, the company's reorder quantity is 800kgs of cocoa powder for each purchase and the lead time varies between 1 to 3 weeks. Required: Compute the following stock levels for cocoa powder (in kilograms). i. Reorder level ii. Maximum stock level iii. Minimum stock level (5 Marks) c) An auto parts supplier sells dry cell batteries to car dealers and auto mechanics. The annual demand is approximately 2,500 batteries. The supplier pays RM50 for each battery and estimates that the annual holding cost is 20 percent of the battery's value. It costs approximately RM20 to place an order (managerial and clerical costs). The supplier currently orders 250 units of dry cell batteries per month. Required: i. Calculate the economic order quantity (EOQ). ii. Calculate total costs for the EOQ. (7 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_2

Step: 3

blur-text-image_3

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

Operational Guidelines For Postmortem Examinations And Auditing

Authors: O.P. Murty, O.P Murty

1st Edition

8123924437, 978-8123924434

More Books

Students also viewed these Accounting questions