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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

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 3RE: Blue Corporation uses the FIFO cost flow assumption. Presented below is information related to Blues...
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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: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
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
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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