You have been provided with the following information for XYZ Supplies: Re-order quantity 10,000 units; Time required
Question:
You have been provided with the following information for XYZ Supplies: Re-order quantity
10,000 units; Time required for delivery 2-4 months; Maximum consumption 2,500 units
p.m.; Normal consumption 2,000 units p.m.; Minimum consumption 1,500 units p.m
Required: Calculate,(5 marks)
i.Re-order stock level
ii.iii) Maximum stock level
iii.Minimum stock level
iv.iv) Average stock level
b) The following data relates to the repair cost incurred and the number of labor hours employed
by Toyotsu Auto Garage in a given week
Repair cost (shs)
600,000
800,000
550,000
1,000,000
700,000
500,000
Number of labor hours employed
4,000
5,000
3,000
6,000
4,000
2,000
Required:
(i)Create cost estimation equation using Range method.
(ii)Assuming that 2750hrs were employed, what would be the total cost?
(iii)If the total cost incurred is sh 750,000, determine the number of labor hours employed(5marks)
3.a) Green Farm Estates has the following accounting information:
shs
Sales729000
Direct labor142000
Purchases of raw materials240000
Selling expenses50000
Administration expenses60000
Inventories as at 1st July2016:
Raw materials64000
Work in progress50000
Finished goods96000
Inventories as at 30th June 2017:
Raw materials56000
Work in progress48000
Finished goods104000
Factory overhead is applied at the rate of 110% of direct labor.
Required:
Prepare a cost of goods manufactured statement for the year ended 30/06/2017(10marks)
b) The following information relates to product Y stocked by XYZ Limited for the month of June 2018.
Date:01June : Bought 2400units @18; 04June : Issued 3200units; 05June: Received 2600 units@20; 06 June: Issued 2700units; 08 June: Bought 3000units @21; 10 June: Received 2800units @22
The closing balance for May 2018 was a batch of 2800units received at a price of sh 20.
Required: Prepare stores perpetual inventory record for product Y using:
i.FIFO method
ii.LIFO method
iii.Determine the value of issues and closing stock.
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine