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TRICKIEST QUESTION EVER ON INVENTORY VALUATION

Forums › ACCA Forums › ACCA MA Management Accounting Forums › TRICKIEST QUESTION EVER ON INVENTORY VALUATION

  • This topic has 4 replies, 5 voices, and was last updated 14 years ago by Anonymous.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • June 12, 2010 at 1:54 pm #44637
    kalakola
    Member
    • Topics: 15
    • Replies: 6
    • ☆

    The following tabels refers to an in ventory item

    reorder level (unit ) 800
    lead time (day) 7
    daily demand (units) 100
    EOQ (units) 2000

    A purchase order was placed in accordance with the above and demand was as expected but the supplier delivered the order 3 days late

    HOW MANY OF THESE UNITS IN INVENTORY IMMEDIATELY AFTER DELIVERY?
    ……… UNITS

    PLZZ anybody solve this question plzzz
    PLEASE HELP SOMEONE HAD FACE IN CBE..

    June 15, 2010 at 8:22 am #63994
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 14
    • ☆

    HOW MANY OF THESE UNITS IN INVENTORY IMMEDIATELY AFTER DELIVERY?
    ……… UNITS
    Wt do u exactly mean?

    June 15, 2010 at 8:58 am #63995
    bridmw
    Member
    • Topics: 5
    • Replies: 132
    • ☆☆

    2000

    If the order where delivered on time it would be 2100.

    Order is made when inventory is at 800 firm uses 100 units per day inventory runs out on day 8 order arrives on day 10 and is added to 0 units in inventory thus the order amount of 2000 is the total inventory.

    Not very tricky at all.

    July 3, 2010 at 1:29 pm #63996
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 1
    • ☆

    hi.i really need ur help on process costing..
    In fact, i’m understanding what is says by dgree of completion..how is for each cost..its a question on Open Tuition notebook:
    chapter 8, MCQ q 9

    July 29, 2010 at 12:21 pm #63997
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 63
    • ☆☆

    yup just like how bridmw said,not tricky at all,just the matter of understanding

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