快速查题-ACCA英国注册会计师试题

A manufacturing company uses 28,000 components at an even rate during the year. Each order placed with the supplier of the components is for 1,500 components, which is the economic order quantity. The company holds a buffer inventory of 700 components. The annual cost of holding one component in inventory is $B.

What is the total annual cost of holding inventory of the component?

       $ O

Which of the following documents would be completed in each situation? 

                                    Material Requisition         Purchase Requisition         Goods received note          Goods returned note

Material returned to                                                                                                                                           

stores from production    

Form completed by the

stores department detailing

inventory requirements    

Materials returned to supplier    

                                    Materials Requisition          Purchase Requisition           Goods received note       Goods returned note

Form completed by

stores on receipt of goods    

Form completed by

production detailing inventory requirements.    

The following represent transactions on the material account for a company for the month of March 20X8:

                                              $000s

Issued to production              144

Returned to stores                   5

The material inventory at 1 March 20X8 was $23,000 and at 31 March 20X8 was $15,000. How much material was purchased in March 20X8?

                       $   O

Your firm values inventory using the weighted average cost method. At 1 October 20X8, there were 60 units in inventory valued at $12 each. On 8 October, 40 units were purchased for $15 each, and a further 50 units were purchased for $18 each on 14 October. On 21 October, 75 units were sold for $1,200.

What was the value of closing inventory at 31 October 20X8?

         $     O

Data relating to a particular stores item are as follows:Average daily usage

Maximum daily usage

Minimum daily usage

Lead time for replenishment of inventory

Reorder quantityWhat is the reorder level (in units) that avoids inventory stockouts?400 units 520 units 180 units 10 to 15 days 8,000 units

                                                  units   O

Which method of inventory valuation is being described?

Characteristic                                                                                       FIFO                LIFO                   AVCO

Potentially out of date valuation on issues.   

The valuation of inventory rarely reflects the actual

purchase price of the material.   

Potentially out of date closing inventory valuation.   

This inventory valuation method is particularly suited

to inventory that consist of liquid materials e.g. oil.   

This inventory valuation method is particularly suited

to inventory that has a short shelf life e.g. dairy products.   

This inventory valuation method is suited to a wheat farmer

who has large silos of grain. Grain is added to and taken from

the top of these silos.   

In times of rising prices this method will give higher profits.   

In times of rising prices this method will give lower profits.   

In times of rising prices this method gives a middle level of

profits compared to the other two.   

Issues are valued at the most recent purchase cost.  

Inventory is valued at the average of the cost of purchases.   

Inventory is valued at the most recent purchase cost.   

The purchase price of an inventory item is $42 per unit. In each three-month period the usage of the item is 2,000 units. The annual holding costs associated with one unit is 5% of its purchase price. The EOQ is 185 units.

What is the cost of placing an order (to 2 decimal places)?

                  $   O

Are the following statements true or false?

Statement                                                                                                 True                  False

In periods of rising prices, FIFO gives a higher valuation of

closing inventory than LIFO or AVCO.  

In periods of falling prices, LIFO gives a higher valuation of

issues of inventory than FIFO or AVCO.  

AVCO would normally be expected to produce a valuation of

closing inventory somewhere between valuations FIFO and LIFO.  

FIFO costs issues of inventory at the most recent purchase price.  

AVCO costs issues of inventory at the oldest purchase price.  

LIFO costs issues of inventory at the oldest purchase price.  

FIFO values closing inventory at the most recent purchase price.  

LIFO values closing inventory at the most recent purchase price.  

AVCO values closing inventory at the latest purchase price.  

Which TWO of the following are included in the cost of holding inventory?

Which TWO of the following statements describe the information a Goods Received Note (GRN) provides?