6. Assuming that the company used a perpetual inventory system, the total quantity and cost of materials purchased for the month of April should be: a. 700 units at P 5,800 b. 700 units at P 5,810 c. 700 units at P 5,400 d. 700 units at P 6,200

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following data on materials purchases and issues during the month of April were
reported:
April I
Beginning balance
Received
Received
400 units at P6
100 units at P7
5
11
13
100 units at P8
400 units
Issued
15
Received
200 units at P6
22
Issued
250 units
50 units
300 units at P9
27
Returned from factory
30
Received
6. Assuming that the company used a perpetual inventory system, the total quantity
and cost of materials purchased for the month of April should be:
a. 700 units at P 5,800
b. 700 units at P 5,810
c. 700 units at P 5,400
d. 700 units at P 6,200
Transcribed Image Text:The following data on materials purchases and issues during the month of April were reported: April I Beginning balance Received Received 400 units at P6 100 units at P7 5 11 13 100 units at P8 400 units Issued 15 Received 200 units at P6 22 Issued 250 units 50 units 300 units at P9 27 Returned from factory 30 Received 6. Assuming that the company used a perpetual inventory system, the total quantity and cost of materials purchased for the month of April should be: a. 700 units at P 5,800 b. 700 units at P 5,810 c. 700 units at P 5,400 d. 700 units at P 6,200
One of the products that Ram Breakfast Foods manufactures is carrot juice. Ram
manufactures and sells 5.000 cases of carrot juice evenly each year. Variable
manufacturing costs are P 4.50 per case. It costs Ram P 3.60 to setup a production run
for carrot juice. It also costs Ram P 2.50 per year to carry a case of carrot juice in
inventory
11. What is Ram's economic production run size?
83 cases
85 cases
с. 120 сases
d. 150 cases
a.
b.
Transcribed Image Text:One of the products that Ram Breakfast Foods manufactures is carrot juice. Ram manufactures and sells 5.000 cases of carrot juice evenly each year. Variable manufacturing costs are P 4.50 per case. It costs Ram P 3.60 to setup a production run for carrot juice. It also costs Ram P 2.50 per year to carry a case of carrot juice in inventory 11. What is Ram's economic production run size? 83 cases 85 cases с. 120 сases d. 150 cases a. b.
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