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required to calculate the following each of the components: (1) Minimun Stock Level You are (ii) Maximum Stock Level (iii) Average Stock Level (4) Re-ordering Level

required to calculate the following each of the components: (1) Minimun Stock Level You are (ii) Maximum Stock Level (iii) Average Stock Level (4) Re-ordering Level

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following is the summary of the receipts and issues of material in a Special Ice factory during December 2020. Prepare Store Ledger according to First in First Out Method. December 2020 1. Opening balance 500 units @ GH¢25 per unit 3. Issue 70 units 4. Issue 100 units S. Issue 80 units 13. Received from supplier 200 units @ GH¢24.50 per unit 14. Returned to store 15 units @ GHe24 per unit 16. Issue 180 units. 20. Received from supplier 240 units @ GHe24.75 24. Issue 304 units. 25. Received from supplier 320 units @ GHe24.50 per unit 26. Issue 112 units 27. Returned to store 12 units @ GHc24.50 per unit 28. Received from supplier 100 units @ GH¢25 per unit per unit b. Two components P, Q are used as follows. Normal usage 1000 units per week each. Re-ordering quantity P 20,000 units Q 8,000 units Re-ordering period P- 4 to 6 weeks Q-2 to 4 weeks The minimum usage is 2000 units per week; with their maximum usage being 3000 units per week each. You are required to calculate the followving each of the components: (1) Minimunm Stock Level (ii) Maximum Stock Level (ii) Average Stock Level (4) Re-ordering Level
Transcribed Image Text:The following is the summary of the receipts and issues of material in a Special Ice factory during December 2020. Prepare Store Ledger according to First in First Out Method. December 2020 1. Opening balance 500 units @ GH¢25 per unit 3. Issue 70 units 4. Issue 100 units S. Issue 80 units 13. Received from supplier 200 units @ GH¢24.50 per unit 14. Returned to store 15 units @ GHe24 per unit 16. Issue 180 units. 20. Received from supplier 240 units @ GHe24.75 24. Issue 304 units. 25. Received from supplier 320 units @ GHe24.50 per unit 26. Issue 112 units 27. Returned to store 12 units @ GHc24.50 per unit 28. Received from supplier 100 units @ GH¢25 per unit per unit b. Two components P, Q are used as follows. Normal usage 1000 units per week each. Re-ordering quantity P 20,000 units Q 8,000 units Re-ordering period P- 4 to 6 weeks Q-2 to 4 weeks The minimum usage is 2000 units per week; with their maximum usage being 3000 units per week each. You are required to calculate the followving each of the components: (1) Minimunm Stock Level (ii) Maximum Stock Level (ii) Average Stock Level (4) Re-ordering Level
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