职上网在线题库 > ACCA英国注册会计师试题 > F2 > Chapter6 > A manufact...

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

扫码查看暗号，即可获得解锁答案！

在此输入暗号

点击获取答案

Chapter6Accountingformaterials

{[Buffer Inventory + (EOQ -r2)] x Annual holding cost per component} =f700 units + (1500 units + 2)] x $3.00 = $4,350

多做几道

Explain what is meant by standard costing

Explain what is meant by a standard cost

Describe four types of standard.

Explain what is meant by a standard hour.

Give five possible sources of information from which a standard materials price may be estimated.

最新试题

该科目易错题

该题目相似题

Which of the following relates to management accounts and which to financial accounts? Management accounts Financial accountsPrepared yearly For internal use Contains future information
Gilbert pic is a furniture manufacturer. How would he classify the following costs?Cost Fixed Variable Semi-variableDirector’s salary Wood Rent of factory Phone bill - includes a line rental Factory workers wage
Bytes Limited operates an IT consultancy business and uses a coding system for its elements of cost (materials, labour or overheads) and then further classifies each element by nature (direct or indirect cost):Element of cost Code Nature of cost CodeMaterials A Direct 100 Indirect 200Labour B Direct 100 Indirect 200Overheads C Direct 100 Indirect 200What would the codes be for the following costs? Cost CodeSalary of trainee IT consultant Planning costs to renew lease of the office Wages of the office manager Cleaning materials used by cleaner
George pic makes stationery. How would he classify the following costs?Cost Production Administration DistributionPurchases of plastic to make pens Managing director's bonus Depreciation of factory machinery Salaries of factory workers Insurance of sales team cars
Which of the following documents would be completed in each situation? Material Requisition Purchase Requisition Goods received note Goods returned noteMaterial returned to stores from production Form completed by thestores department detailinginventory requirements Materials returned to supplier Materials Requisition Purchase Requisition Goods received note Goods returned noteForm completed bystores on receipt of goods Form completed byproduction detailing inventory requirements.
Data relating to a particular stores item are as follows:Average daily usageMaximum daily usageMinimum daily usageLead time for replenishment of inventoryReorder 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 of the following relate to marginal costing and which to absorption costing? Marginal costing Absorption costingThe cost of a product includes an allowance for fixed production costs. The cost of a product represents the additional cost of producing an extra unit. The following data are for questions 155 and 156The budget for Bright's first month of trading, producing and selling boats was as follows: $000Variable production cost of boats 45Fixed production costs 30Production costs of 750 boats 75Closing inventory of 250 boats (25)Production cost of 500 sold 50Variable selling costs 5Fixed selling costs 25 80Profit 10Sales revenue 90The budget has been produced using an absorption costing system.
Explain what is meant by a flexible budget
Give five possible sources of information from which a standard materials price may be estimated.
Explain what is meant by a cost variance?