1. Why do companies adopt material control measures? Your discussion should include the types and methods of material control adopted by manufacturing organizations.

2. Using the following information under FIFO method, determine the cost of materials used and the cost of ending inventory for the month of July 2021.
July 1,2021 Balance on hand, 1000 yards of linen @ OMR 4.000 each.
3 Issued 250 yards
5 Received 500 yards @ OMR 4.500 each
6 Issued 150 yards
10 Issued 110 yards
15 Received 500 yards @ OMR 5.500 each
20 Returned 300 yards to the vendor from July 15th Purchase
25 Issues 600 yards

3. Patriot Oman predicts that it will use 360,000 kgs of materials during the year. The material is expected to cost OMR 5 per kg. Patriot Oman anticipates that it will cost OMR 72 to place each order. The annual carrying cost is OMR 4 per kg. Determine the Economic ordering quantity.

Answer rating: 100% (QA)

1 First Dear We Know What is Material Control Material Control is a Systemic Control over the Purcha... View the full answer