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Illustration: Dinesh Limited is looking selective control for its inventories. By using the subsequent datas, prepare the ABC plan.
Items A B C D E F G
Unit 8,000 15,000 5,000 7,5000 5,000 7,000 2,500
Unit Cost (Rs.) 5.50 1.70 30.40 1.50 0.65 5.14 51.20
Solution:
Item
Per Unit
Cost (Rs.)
Inventory
Total Value
Cate- gory
Units
% of
Total
Cumul- ative %
Cost Rs.
ABC Analysis:
C G A F B D E
30.40
51.20
5.50
5.14
1.70
1.50
0.65
5,000
2,500
8,000
7,000
15,000
7,500
10
15%
5
16
30%
14
30
15 55%
45%
100%
1,52,000
1,28,000
44,000
36,000
25,000
11,250
3,250
38
70%
32
11
20%
9
6.38
10%
2.80
0.82
90%
A
B C
50,000
4,00,000
what is closing entry
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