respect your fellow students. Do not leave the room in the last 15 minutes of the mid-term examination. • Please put your belongings underneath your own seats - to prevent theft. DO NOT TAKE THE MID-TERM EXAMINATION PAPER WITH YOU. 1 Question One: ABC Costing (22 Marks) Fine Paint Company manufactures two house paints:
Words: 3312 - Pages: 14
constant demand, and inventory can be instantly replenished. If Narragansett buys from Supplier A it would have to make 8 orders a year while with Supplier B it would have to place 11 orders a year. With Supplier A, it would have a reorder point of 42 winches while Supplier B has an 84 winches reorder point. The total inventory cost Narragansett would occur when ordering through Supplier A is $14,388. The total inventory cost through Supplier B totals $10,174. With the total inventory cost being lower
Words: 876 - Pages: 4
Arrangements to provide financial support • Pledges of collateral Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Jones's inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event. Access the FASB Codification at http://asc.fasb.org/home to conduct research using the Codification
Words: 1419 - Pages: 6
actions should the company take in the area of inventory control? Support your recommendations with conceptual and economic analysis. 2. What is your reaction to the president’s comment about not having to compete on cost? 3. What will be the impact of the inventory control problem change as the sales volume increases? 4. How could AWP benefit from the establishment of an inventory control system? What functions should be included in an inventory control system? Analysis The success of AWP
Words: 1177 - Pages: 5
entry may indicate which of the following: a. 0 An increase in an asset account b. 0 A decrease in an asset account c. 0 An increase in a liability account d. 0 An increase in a capital account Objective: Journalize basic transactions. 5. ABC Corporation records sales for the day totaling $50,000 in cash sales and $35,000 in sales on account. Which of the following is the correct journal entry? a. 0 Cash $50,000 Accounts Receivable $35,000
Words: 1960 - Pages: 8
MATERIALS MANAGEMENT Importance of materials management :- 1. Materials input is very important as excess material as inventory causes costs to the company and shortage of material results into stoppage of conversion process and subsequently shortage of finished goods leading to customer dissatisfaction 2. Out of 5Ms, that are inputs to a conversion process, material is substantial in terms of its contribution to product cost, and current assets. 3. 51.1% of product cost is on account
Words: 3992 - Pages: 16
SUPPLY CHAIN JARGONS Pegging In MRP and MPS, the capability to identify the sources of its gross requirements and/or allocations for the given item. Pegging can be thought of as active where-used information. ABC Inventory Control An inventory control approach based on the ABC classification. According to this classification, the groups of items are placed in the decreasing order of annual dollar volume (price multiplied by projected volume) or some other criteria. This array is then split into three
Words: 2942 - Pages: 12
Q. Briefly summarize the case. In order to increase sales, Reeds Clothier concentrated on increasing inventory. They were afraid that lower inventory level will harm sales. Company renovated the stores and tripled the inventory. But sale did not increase as they expected. While they tripled the inventory, sales doubled only. This resulted in excess inventory. Money was stuck up in inventory. Instead of analyzing the problem and addressing the root cause, company considered it as cash problem and
Words: 1107 - Pages: 5
Inventory is a quantity of goods owned and stored by a business that is intended either for resale or as raw materials and components used in producing goods that the business sells. For example, motherboards warehoused at a computer company to be used in the assembling of its computer systems are inventory. The products displayed for sale and stored in the backrooms of a department store are inventory as well. Inventory is the heart beat of any business and its management is a major interest of
Words: 1383 - Pages: 6
Booker’s Book Bindery Inventory Analysis Booker’s Book Bindery (BBB) divides inventory items into three classes according to their dollar usage. The scheme they use to classify inventory is given in Table 1. Table 1 |Class |Approximate |Approximate | | |percent of items |percent dollar | | | |usage | |A |20% |80% | |B |30% |15% | |C
Words: 553 - Pages: 3
