Question: 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

 State THREE (3) valuation method for inventory. (3 marks) Super Cookies

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)

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