PATRIOT ODUNARO BABATUNDE JIMOH (08038454008)
"IN ALL YOUR GETTING GET WISDOM".
NOTICE: STUDENTS DON`T COPY YOURSELVES, JUST BE YOURSELF. IT IS WELL WITH OUR SOUL ALLAHUMO KUNFAYAKUN AMIN.
TO WHOM:
* ND ACCOUNTANCY DEPARTMENT
* ND BUSINESS ADMINISTRATION
REVIEW QUESTIONS, VISIT:
ASSIGNMENT FOR FULL TIME
1. Motiriri Enterprises
provides the following data relating to component B97020314.
Cost of raw material N10
per unit
Usage per day 100
units
Minimum re-order period 20
days
Maximum re-order period 30
days
Cost of ordering materials N400
per order
Carrying cost 10%
per annual
Assume that each year consists of 48 working weeks of 5 days per week.
Required: Calculate:
(i) The Re-Order Level
(ii) The Re-Order Quantity (iii)
The Maximum Level
(iv) The Minimum Level (v) The Average Level
(b) Write short note on the
following terms:
i. Cost ii. Cost Unit iii. Cost Centre
(c) List three element of cost known to you.
2. Ajimatanraeje
Motors Limited, a car assembly plant buys batteries from an overseas supplier
at N20 per battery. Total annual requirement are 25,000 batteries at a rate of
100 per working day. The following cost data are available:
Desired annual return on stock investment N2.
Sundry carrying cost/ unit per year 50k.
Total carrying cost/ unit per year N2.50
Cost of purchase order include clerical cost, stationery, telephone N50.
Average usage 3,000 units per week
Minimum Usage 2,200 units per
week
Maximum Usage 4,200 units per week
Re-Order Period 10 14 weeks
Required:
(a) Prepare in tabular form the total annual relevant cost for each of
the following order sizes: 250, 500, 1000, 2000, 4000, and 8000.
(b) What is the EOQ for batteries at Ajimatanraeje Motors Limited and
why?
(c) The data given above is to be used for calculating the following
stock control levels:
i. Maximum Level ii. Average
Level iii.
Minimum Level vi. Re-Order Level
BEST OF LUCK!
