Receipt Issue
Date Value
s s
K
Units Units
'000
Opening
500 1.250
stock
5 January 1,000 2,750
12 January 1,600 4,480
18 January 1,200 3,480
19 January 2,100
25 January 1,500 4,350
31 January 1,800
A large retailer with multiple outlets maintains a central warehouse from which the outlets are supplied.
The following information is available for part number Zed525.
Buzton Ltd has the following budget for overhead costs:
ICOOO
Depreciation of factory 1,000
Factory repairs and maintenance 600
Factory office costs 1,500
Depreciation of equipment 8M
Insurance of equipment 200
Heating 390
L@hting 100
Canteen 900
5,490
Information relating to the production and service centres in the
factory is as follows:
Production
Service centres
centres
Dept Dept
B Dept Y
A X
Floor space (square
1,200 1,600 800 400
metres)
Volume (cubic metres) 3,000 6,000 2,400 1,600
Number of employees
30 30 15 15
(head count)
Book value of equiprnent
30 20 10 20
(KOOO)
Required
Determine how the overhead costs should be apportioned between
the four departments
Boot manufacturer of industrial safety shæs oyates a labour bonus
Limited payment
system in its factory with bonus being paid at 75% of the base for all
standard hours saved.
The following is a summary Ofthe labour inforrnation for month 6 for three
employees:
Chet
Chila Chulu
a
Work issued and completed
72 188 432
(Pails)
Standard time allowed •
40 15 7
mins/ pair
Basic Hourly rate (Kwacha) 920 960 940
Total hours worked 45 46 44
Hours worked on indirect
5 2
work
The basic working week is 40 hours; the first three hours overtirne is paid
at time plus one third and the remainder at time plus one half.
Required
Compute the individual employee•s gross wages payable
Compute the net wages payable for each ofthe three employees
Mozdo uses the economic order quantity formula (EOQ) to
establish its optimal
reorder quantity for its material. The following data relates
single costs to the stock
Purchase
price
Carriage
Kl 5,000 per unit
costs
K50,000 per order
Ordering
K5,000 Fr order
costs
10 % of purchase price plus K200 per unit per
Storage
annum 4000 units
costs
Annual
demand
What is the EOQ to the nearest whole unit?
1 Using the FIFO method of pricing issues, the cost of issues (in K’000) during the month was:
2
A. K11,250 B. K10,800 C. K10,855
D. K11,300
Using the LIFO method of pricing issues, the value of stock at 31st January issues (in K’000) is:
K4,100
K3,720
K5,120
K3,950
Using the AVCO method of pricing issues, at what price would the issues on 31” January be made
(calculate to two decimal places)
K3.00 B. K2.95
K2.90
K2.83
The following information relates to questions 1, 2 and 3.
The stock record for component BXY for the month of January showed:
A large retailer with multiple outlets maintains a central
warehouse from which the outlets are supplied. The following
information is available for part number Zed525.
Average usage
350 per day
Minimum usage
180 per day
Maximum usage
420 per day
Lead time for
11 — 15 days
replenishment
7000 units
Reorder quantity
6500 units
Reorder level
