Reference no: EM132785967
Question - A local TV repairs shop uses 36,000 units of a part each year (A maximum consumption of 100 units per working day). It costs P20 to place and receive an order. The shop orders in lots of 400 units. It cost P4 to carry one unit per year of inventory.
1. How much is the reorder point assuming normal lead time of 3 days?
2. If you are expecting 2 days delay, how much is the safety stock
A company, at the beginning of its January 1 fiscal year, reported a beginning inventory of 300 units at a cost of P100 per unit. Over the first quarter, the company made the following purchases:
January 15 purchase of 100 units at a cost of P130 = P13,000
February 9 purchase of 200 units at a cost of P150 = P30,000
March 3 purchase of 150 units at a cost of P200 = P30,000
In addition, the company made the following sales:
End of February sales of 100 units
End of March sales of 70 units
1. What is the amount of the ending inventory using FIFO method?
2. What is the amount of the total goods available for sale using FIFO method?