1, Neiklot Ltd have been approached to produce a special order contract for 200 products. Each...

   

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1, Neiklot Ltd have been approached to produce a special order contract for 200 products. Each product requires 0.85kgs of material K. There are 400Kgs of material K in inventory. This material was purchased for another contract 2 years ago and the contract subsequently fell through and was never completed. Material K was purchased for £8.50 per kg but is held in inventory at £7.75 per kg. Material K can be sold for scrap at £3.50 per kg but could also be used as a substitute for material Z which is used within the manufacture of a number of products supplied by Neiklot Itd. A coating would have to be applied to material K, at a cost of £4.50 but this would mean that the company would not have to purchase Material Z at a cost of £7.00. The relevant cost of the material K is: a) £1,445.00 b) £1,317.50 c) £595.00 d) E425.00 2, After having completed a linear programming exercise Twain Ltd is trying to establish how much extra it can pay for additional quantities of material X. The objective function is to maximise 120H + 8OL and the maximum contribution is £29,800. The binding constraints are Material X (2.5H + 3.5L = 850) and Labour (5H +31 = 1,200) For each additional kg of material X Twain can pay: a) Up to £4.00 above the current price b) Up to £26.00 above the current price c) E4.00 per kg d) £26 per kg 6. Cola Beverage Company uses a process costing system to collect costs related to the production of its cherry flavoured cola. The cola is first processed in a Mixing Department at Cola and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to Cola's two departments for the month of May: Mixing. Bottling Cases of cola in work in process, May 1 10,000. 3000 Units started and completed during May 67,000. Cases of cola in work in process, May 31. 4000. 8000 How many cases of cola were started and completed in the Bottling Department during May? a) 69,000 b) 71,000 c) 72,000 d) 77,000 1, Neiklot Ltd have been approached to produce a special order contract for 200 products. Each product requires 0.85kgs of material K. There are 400Kgs of material K in inventory. This material was purchased for another contract 2 years ago and the contract subsequently fell through and was never completed. Material K was purchased for £8.50 per kg but is held in inventory at £7.75 per kg. Material K can be sold for scrap at £3.50 per kg but could also be used as a substitute for material Z which is used within the manufacture of a number of products supplied by Neiklot Itd. A coating would have to be applied to material K, at a cost of £4.50 but this would mean that the company would not have to purchase Material Z at a cost of £7.00. The relevant cost of the material K is: a) £1,445.00 b) £1,317.50 c) £595.00 d) E425.00 2, After having completed a linear programming exercise Twain Ltd is trying to establish how much extra it can pay for additional quantities of material X. The objective function is to maximise 120H + 8OL and the maximum contribution is £29,800. The binding constraints are Material X (2.5H + 3.5L = 850) and Labour (5H +31 = 1,200) For each additional kg of material X Twain can pay: a) Up to £4.00 above the current price b) Up to £26.00 above the current price c) E4.00 per kg d) £26 per kg 6. Cola Beverage Company uses a process costing system to collect costs related to the production of its cherry flavoured cola. The cola is first processed in a Mixing Department at Cola and is then transferred out and finished up in the Bottling Department. The finished cases of cola are then transferred to Finished Goods Inventory. The following information relates to Cola's two departments for the month of May: Mixing. Bottling Cases of cola in work in process, May 1 10,000. 3000 Units started and completed during May 67,000. Cases of cola in work in process, May 31. 4000. 8000 How many cases of cola were started and completed in the Bottling Department during May? a) 69,000 b) 71,000 c) 72,000 d) 77,000

Answer rating: 100% (QA)

Solution 1 d 425... View the full answer