ANSWER ACTIVITY 1-3 ( I NEED A SOLUTION)

Activity 1 - Heaven & Earth Company (De Leon, Prob 7, Chap 6) The Heaven & Earth Company made the following material purchases and issues during January: Date Details Receipts Issues Balance Jan 01 Balance on hand 1,000 units at P4 '03 Issued to production 250 units '05 Purchased 500 units at P4.50 06 Issued to production 150 units Activity 1 - Heaven & Earth Company (De Leon, Prob 7, Chap 6) Date Details Receipts Issues Balance Jan 10 Issued to production 1 10 units 11 Factory returned to the store 10 units room that were issued 10th 15 Purchased 500 units at P5.00 20 Returned to vendor from Jan 300 units 15th purchases 26 Issued to production 100 units Compute the cost of materials used and materials ending inventory using (a) FIFO and (b) average under periodic inventory and perpetual inventory systems.Activity 2 The Raindrops Company (De Leon, Prob 13, Chap 6) The following relates to The Raindrops Company for the current year (assume that the units will be required evenly throughout the year): Units required for the year 60,000 Cost of placing an order P 800 Total Carrying cost per year P1,200 Required: (1) Using the tabular form, compute the total cost of placing an order and total carrying cost at (a) 5,000 units; (b) 10,000 units; (c) 20,000 units; (d) 40,000 units; and (e) 60,000 units. (2) Using the formula, prove the correctness of tabular method (1). Activity 3 The Nicole Company (De Leon, Prob 14, Chap 6) The Nicole Company has obtained the following costs and other data pertaining material X: Order Quantity 3,500 units Normal use per day 500 units Maximum use per day 600 units Minimum use per day 100 units Lead time 5 days Required: Compute for (1) safety stock (maximum); (2) order point; (3) normal maximum inventory; and (4) absolute maximum inventory