14. Grace Corp has an expected annual usage of 7,800,000 units of materials. The standard order siz 65,000 units. The supplier cost each unit at P150., a place one order is P90. What is the estimated annual order cost ?
14. Grace Corp has an expected annual usage of 7,800,000 units of materials. The standard order siz 65,000 units. The supplier cost each unit at P150., a place one order is P90. What is the estimated annual order cost ?
Chapter1: Financial Statements And Business Decisions
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What are the answers for questions 14-16?
Transcribed Image Text:14. Grace Corp has an expected annual usage of
7,800,000 units of materials. The standard order size is
65,000 units. The supplier cost each unit at P150., and to
place one order is P90.
What is the estimated annual order cost ?
15. Macdo had 150,000 units of product A on hand at
January 1, 2020, costing P21 each. Purchases of Product
A during the month were as follows:
Units
Unit Cost
January 5
January 18
January 30
200,000
250,000
100,000
P22
23
24
A physical count on January 31, 2020 shows 250,000
units of Product A on hand.
What is the cost of the inventory at January 31, 2020
under FIFO method?
16. Macdo had 150,000 units of product A on hand at
January 1, 2020, costing P21 each. Purchases of Product
A during the month were as follows:
Units
Unit Cost
January 5
January 18
January 30
200,000
250,000
100,000
P22
23
24
A physical count on January 31, 2020 shows 250,000
units of Product A on hand.
What is the cost of the inventory at January 31, 2020
under LIFO method?
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