Scribd Logo
Upload

Welcome to Scribd!

  • 304 views

    FEB 2015 Maf151 Test 1

    Uploaded by

    Aisyah Mohd Yusre
    This document contains information related to accounting questions on direct and indirect expenses, prime costs, production costs, non-production costs, economic order quantity calculations, reorder levels, and a materials stock record. It includes tables with numerical data on expenses, costs, consumption rates, order quantities, storage costs, and inventory balances over a monthly period. The key information provided includes calculations of economic order quantity, reorder stock level, maximum and minimum stock levels based on consumption and reorder rates for a fertilizer product.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    FEB 2015 Maf151 Test 1

    Uploaded by

    Aisyah Mohd Yusre
    304 views3 pages
    This document contains information related to accounting questions on direct and indirect expenses, prime costs, production costs, non-production costs, economic order quantity calculations, reorder levels, and a materials stock record. It includes tables with numerical data on expenses, costs, consumption rates, order quantities, storage costs, and inventory balances over a monthly period. The key information provided includes calculations of economic order quantity, reorder stock level, maximum and minimum stock levels based on consumption and reorder rates for a fertilizer product.

    Original Title

    FEB 2015 maf151 test 1

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains information related to accounting questions on direct and indirect expenses, prime costs, production costs, non-production costs, economic order quantity calculations, reorder levels, and a materials stock record. It includes tables with numerical data on expenses, costs, consumption rates, order quantities, storage costs, and inventory balances over a monthly period. The key information provided includes calculations of economic order quantity, reorder stock level, maximum and minimum stock levels based on consumption and reorder rates for a fertilizer product.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    304 views3 pages

    FEB 2015 Maf151 Test 1

    Uploaded by

    Aisyah Mohd Yusre
    This document contains information related to accounting questions on direct and indirect expenses, prime costs, production costs, non-production costs, economic order quantity calculations, reorder levels, and a materials stock record. It includes tables with numerical data on expenses, costs, consumption rates, order quantities, storage costs, and inventory balances over a monthly period. The key information provided includes calculations of economic order quantity, reorder stock level, maximum and minimum stock levels based on consumption and reorder rates for a fertilizer product.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    FEB 2015

    Question 1 c.

    i. direct expenses
    ii. indirect expenses
    iii. Indirect labor
    iv. Direct expenses
    v. Indirect expenses
    vi. Direct labor
    vii. Direct material
    viii. Indirect material
    ix. Indirect material
    x. Indirect expenses

    Question 1 B.

    Prime cost

    RM
    Direct material
    Raw material purchases 79,020
    Less : Returns of detective raw materials (4,020)
    75,000
    Direct labour :
    Salaries and wages (70% x 300,800) 210,560

    Direct expenses :
    Hire of special machine 5,000
    290,560

    Production overhead

    RM
    Indirect labor:
    Salaries & wages production supervisor 39,104

    Indirect expenses :
    General expenses ( 25% x 93,460) 23,365
    Petrol and oil ( 7/11 x 11,308) 7,196
    Insurance ( 21,400 – 9,920) 11,480
    81,145

    Production cost

    Prime cost 290,560


    Production overhead 81,145
    Production cost 371,705
    Non-production cost

    RM
    Administration costs
    Salaries and wages office administration 51,136
    Insurance 9,920
    Distribution costs
    Petrol and oil ( 4/11 x 11,308 ) 4,112
    General expenses (75% 93,460) 70,095
    135,263
    Question 2

    b. Rimbunan Sdn Bhd is a leading fertilizer trader in Malaysia. It trades a complete range of

    fertilizers for all crop needs. One of the prominent products is “CBH Compound No.33”.

    The annual demand for the product is 2,000 tonnes (D) . The monthly sales may rise to

    maximum 400 tonnes and will never be less than 50 tonnes.

    The company usually purchase the product from supplier at optimum quantity and the

    delivery period for “CBH Compound No.33” is between 1 and 1.5 month (order size/quantity). The
    cost of placing an order is RM1500 per order (O) including the clerical cost and transportation. The

    inventory of “CBH Compound No.33” is kept in a warehouse and the storage cost is

    RM200 per tonne (C) including the insurance cost of RM75.

    Required:

    Identify the following:

    i. The Economic Order Quantity (EOQ)


    D: 2000
    O: RM1500
    C: RM200
    EOQ: |2x2000x1500/200 :173.21 tonnes

    ii. The Re-order stock level (ROL)


    = Max. consumption X Max. reorder period
    = 400 x 1.5month
    =600 tonnes

    iii. The Maximum stock level (MAL)


    = ROL – (min. Consumption x min. reorder period ) + EOQ
    = (600 – ( 50 x 1month ))+ 173.21
    = 723.21 tonnes

    iv. The Minimum stock level (MIL)


    = ROL – (Avg. consumption x Avg. reorder period )
    = 600 – (( 50+400/2) X (1+1.5/2))
    = 318.75 tonnes

    c.

    Date Receipts Issues Balance


    Jan units CPU Total Units CPU Total Units CPU Total
    1 Bal b/d 7,200 4 28,800
    3 2,200 4 8800 5,000 4 20,000
    12 5,000 4 20,000 - - -
    17 3,800 4.2 15,960 3,800 4.2 15,960
    18 500 4.2 2,100 3,300 4.2 13,860
    21 2,000 4.2 8,400 1,300 4.2 5,460
    23 100 4.2 420 1,400 4.2 5,880
    24 1,500 4.7 7,050 1,400 4.2 5,880
    1,500 4.7 7,050
    27 1000 4.2 4200 400 4.2 1680
    1,500 4.7 7050
    31 Stock 200 4.2 840 200 4.2 840
    loss
    1,500 4.7 7,050
    31 Closing 1,700 7,890
    stock

    b. closing stock is 1,700 units at RM7,890.

    You might also like