39. The following are annual cost of Jazh Corp. relating to Material O which require 40,000 units per year: Unit cost Insurance cost P20 Storage cost Freight-in Order cost 32 36 10 Interest that could have been earned on alternative investment of funds P320,000
39. The following are annual cost of Jazh Corp. relating to Material O which require 40,000 units per year: Unit cost Insurance cost P20 Storage cost Freight-in Order cost 32 36 10 Interest that could have been earned on alternative investment of funds P320,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:and Control
rial X during
ubat is the economic order quantity for the company?
c. 2,545
d. 2,700
n hand
00
a. 1,800
b. 1,273
00
D00
Assuming that the company will not provide any safety stock units. How
much would be the annual inventory costs?
a. P5,400
b. Рб,000
с. Р2,700
d. P8,100
al lead time of
39. The following are annual cost of Jazh Corp. relating to Material O which
require 40,000 units per year:
g normal lead
Unit cost
Insurance cost
P20
Storage cost
Freight-in
Order cost
32
36
per order and
10
Interest that could have been earned on alternative investment of funds
P320,000
What is the annual carrying cost per unit?
roducts. The
sian country.
a. 96
b. 60
с. 106
d. 54
Ea cost of P8
40. Norin Corp. uses 10,500 yards of material X each day to make shirts. It
usually takes 10 days from the time Norin orders the material when it is
received. If Norin desired a safety stock of 21,000 yards, what is the order
point?
a. 126,000
b. 157,500
ction process
costs P90 to
e casting in
need to keep
y conditions,
c. 94,500
d. 21,000
ake as much
age of their
41. The order cost per order of an inventory is P400 with an annual carrying
cost of P10 per unit. The economic order quantity for annual demand of
2,000 units is
a. 400
b. 440
c. 480
d. 500
42. The expected annual usage of a particular material is 540,000 units, and
the standard order size is 36,000 units. The invoice cost of each unit is
P900 , and the ordering cost per order is P240. Assuming the company
does not maintain safety stock, the average inventory is:
191
B No. 2
Transcribed Image Text:Materials Procurement, Use and Control
a. 30,000 units
b. 18,000 units
c. 22,500 units
d. 45,000 units
The total ordering cost is:
a. P8,640,000
b. P3,600
follows:
c. P13,500
d. P17,100
Units
200,000
250,000
100,000
Unit Cost
Jan. 5
Jan. 18
Jan. 30
22
23
24
43. On January 2030, Tony Corporation has the following inventory purchases
January
Units
5,750
5,100
7,600
6,600
Amount
P7,500
P5,850
P6,300
P4,950
A phys The cost of the inventory at January 31, 2030 under the FIFO
15
25
method is:
a. P5,550,000
b. P5,350,000
c. P5,850,000
d. P5,250,000
A physical count of inventory on January 30 reveals that there are 1,000
units on hand.
The cost of the inventory at January 31, 2030 under the LIFO method is:
a. P5,550,000
b. P5,350,000
c. P5,850,000
d. P5,250,000
Using the LIFO inventory method, what is the value of the ending inventory
on January 30?
a. P1,000
b. P750
45. 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. The estimated annual order cost is?
a. P10,800
b. P18,000
c. P1,304
d. P925
c. P1,620,000
d. P 75,000
Using the FIFO inventory method, what is the value of the ending inventory
on January 30?
a. P750
b. P1,304
46. Ivonne uses 100,000 units of Material C annually in its production.,
Ordering cost consist of P1,000 for placing a long distance call to make the
order and P4,000 for delivering the order by truck to the company
warehouse. Each material cost Pl10,000 and the carrying costs are
estimated at 15.625% of the inventory cost.
What is the EOQ?
a. 1,200
b. 1,000
c. P1,000
d. P925
Using the FIFO inventory method, what is the value of inventory allocated
charged to cost of goods sold in January:
a. P21,000
b. P17,500
c. P 23,295
d. P23,850
c. 800
d. 900
Using the weighted average cost method, the amount allocated to the
ending inventory on January:
a. P925
b. P1.130
What is the total ordering cost?
a. P650,000
b. P525,000
c. P1,305
d. P982
c. P550,000
d. P625,000
The inventory method which results in the highest gross profit for January
What is the total carrying cost?
a. P650,000
b. P525,000
is:
a. FIFO method
b. Weighted average method
c. P550,000
d. P625,000
c. LIFO method
d. None of the choices.
192
193
Chapter 3: A Closer look on Cost Accounting
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