Reference no: EM132618944
Afcon Ltd uses a direct material (Product code: RM 005) in the production of their finished product.
The following transactions took place during the month of February 2020:
01/02/2020 Balance of 50 units at R20.00 each.
10/02/2020 Purchased 75 units at R25.00 each from Reach Ltd on credit.
19/02/2020 Purchased 25 units at R27.50 each for cash.
22/02/2020 Issued 80 units into production.
25 /02/2020 Returned 10 units bought on the 10/02/2020, to Reach Ltd.
28/02/2020 Received 5 units back from production.
Required:
Problem 1: Compile a stock ledger card for RM 005 using the FIFO inventory valuation method.
The following information relates to an article manufactured by Betok Ltd:
Annual requirement: 32,400 units
Cost per order: R96
Carrying cost per unit: 24%
Cost per unit: R18
Required:
Problem 2: Calculate the EOQ