Calculate maximum and minimum levels

Assignment Help Managerial Accounting
Reference no: EM132598409

Question a. When should inventory be ordered to avoid from stock shortage? Discuss with practical example. Same examples will be marked zero.

Question b. From the book of records of Zaria Arts, it is found that the average daily requirement of 20 x 30 - 90 grams art paper are 100 reams, the maximum weekly requirements of art paper do not exceed 900 reams and minimum weekly requirements during any week of 6 working days are not likely to fall below 300 reams. The time required to receive supplies is 4 days with minimum time period of 3 days in normal situations. Company has to pay Rs. 10 every time an order is placed. Interest on average inventory is 5% with carrying cost of 7%. Company purchases one ream at Rs. 50. However, in case of emergency, it takes 2 days to receive supplies. Company requires 35000 reams on annual basis.

Required: Calculate maximum and minimum levels, average maximum level and danger level.

Reference no: EM132598409

Questions Cloud

How do find the net present value of the project : Additional working capital of R7,000 would be needed immediately, Determine the net present value of the project. Show all your calculations.
Solution during glomerular reabsorption : In the process of glomerular filtration, water and smaller solutes are squeezed through a ball of capillaries called the glomerules
Describe what biometric security device : Describe what a biometric security device is and explain how your employer might use one to more of these devices to protect its servers.
What are the five ict enablers of energy efficiency : What are the five ICT enablers of energy efficiency identified by European strategic research Road map to ICT enabled Energy-Efficiency in Buildings.
Calculate maximum and minimum levels : From the book of records of Zaria Arts, it is found that the average daily, Calculate maximum and minimum levels, average maximum level and danger level.
Financial measures used by two healthcare firms : Compare and contrast 4 common financial measures used by two healthcare firms.
What would be altoona valve company finished-goods : Find What would be Altoona Valve Company's finished-goods inventory cost on December 31 under the variable-costing method?
Describe the differences between the bond ratings : Describe the differences between the bond ratings. Identify the strengths and weaknesses of each rating.
Plot speed response and distance travelled by the vehicle : Draw a sketch or create a table detailing the track geometry for the longitudinal wagon dynamics simulation with your selected radius of curve

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Explain job cost to manage and control its operations

Bergen Community College can/will/should use job cost to manage and control its operations just like for-profit corporations.

  How many units should crane plants produce during april

April and 60 units in May. Crane Plants keeps 10% of the next month's sales as ending inventory. How many units should Crane Plants produce during April?

  Show the contribution margin income statement

MFE 6100 - Determine the contribution margin per machine hour that each product generates and What is the current break-even point in units for both products combined?

  Determining relevant per unit cost

Lewis Auto Company manufactures a part for use in its production of automobiles. When 10,000 items are produced, the costs per unit are:

  Should division of rhine autos make or buy the component

Should the Division of Rhine Autos make or buy the component? One of the divisions within Rhine Autos is currently negotiating

  Budgeting for contemporary organisations

Based on your literature findings would you recommend budgeting for contemporary organisations for planning and control purpose? Explain.

  How traditional methods of allocating overhead

Briefly explain how traditional methods of allocating overhead to products might underallocate costs to low-production-volume products.

  Calculate the percentage error using the abc costs

Using the costs assigned in Requirement 1, calculate the percentage error using the ABC costs as a benchmark. Comment on the value and advantages of this ABC simplification.

  What were the total cost per product and the cost per unit

What were the total cost per product and the cost per unit of each product in each quarter when production units are the allocation basis?

  Create a monthly flexible manufacturing overhead budget

Create a monthly flexible manufacturing overhead budget for the year ending December 31, 2020, assuming production levels range from 35,000 to 50,000

  Compute predetermined overhead rate under current method

Compute the predetermined overhead rate under the current method of allocation and determine the unit product cost of each product for the current year.

  How do prepare a schedule of expected solutions

How do prepare a schedule of expected solutions? Paddu's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd