1
CHAPTER 2 Multiple Choice Questions – Theoretical 1. 2. 3. 4. 5.
c b a b a
6. 7. 8. 9. 10.
b c b b a
11. 12. 13. 14. 15.
a a a a a
Multiple Choices - Computational 1.
(a) 10,000 x P500 10,000
2.
+
P1 x .20 x 10,000 2
=
(a) 1,000 + 1,500 = (100x 20) + SSQ SSQ = 500 units
3.
(a) EOQ =
2 x 5,200 x P250 P5
= 721 4.
(a) 5,200/721 = 7.2
5.
(a) D = 10,000, P = P225, C = P225 EOQ =
2 DP C
=
2 x 10,000 x P225 10
= 670.82 = 671 jerseys 6.
(a) Number of orders per year = = =
D EOQ 14.90 15 orders
=
10,000 671
P1,500
2 7.
(a) Demand each Working day
=
D Number of working days
=
10,000 365 27.40 jerseys per day
=
Purchase lead time = 7 days Reorder point = 27.40 x 7 = 191.80 or 192 jerseys 8.
(a) 2
9.
x 50,000 x P5 P2
=
500
(a) [(10,000 / 250) x 30]
+ [(70 - 30) x 40]
30 ( 10,000 / 250) + 40 ( 70 - 30) = 2,800 10.
11.
(a) Safety Stock
Expected Stockout
Stockhout Cost
10 20 50 55
2.5 1.5 .5 .25
P200 120 40 20
P 20 60 100 110
(a) (1,400 - 600)
12.
Carrying Cost
+ 2,000 = 2,800
(a) P800 P.12 + P.10 + 10,000 = .30
13.
(a) SS OP
= =
(7,200 / 2,400) x (45 – 20) 20 (7,200 / 240) + 750
= 750 = 1,350
Stockhout and Carrying costs P220 180 140 130
3 14.
(a) 2 x RU x CO CU x CC 2 x 1,000 x P50 P100 x .15625 EOQ
=
6,400
= 6400 = 80 15.
(a) Order Cost
= RU x CO EOQ = 1,000 x P50 80 = P625
16.
(a) CC
17.
= = =
½ x EOQ x CU x CC ½ x 80 x P100 x .15625 P625
(a) 140 + (100 x 7 days) = 840
18.
(a) 140 + (1,000 / 2) = 640
19.
(a) 140 + 1,000 = 1,140
20.
(a) 1,000 =
2 x 25,000 x CO P1
1,000 =
50,000 x CO
1,000,000 = P50,000 x CO CO = P20
4 21.
(a) EOQ
22.
=
2 x 20,000 x P160 P1.60
=
2,000 yards.
(a) 20,000 / 2,000 = 10 order
23.
(a) Demand each working day
= = = =
Annual demand / No. of working days 20,000/250 80 yards per day 400 yards per weedl
Purchasing lead time Reorder point
= =
2 weeks 400 x 2 = 800 yards
5
SOLUTIONS TO PROBLEMS Problem 2-1 1.
Purchase Order: Big Manufacturers 123 Molave Street Fairview Ave., QC
Purchase Order 144 Date 4/4/08
To:
Shipping Instructions Date Wanted 4/17/08
Small Products 54 West Avenue Cebu City
Quantity
Description
4,390 840 1,890
By
2.
103 – 2” x 4” plastic sheeting 122 – 3” x 5” plastic sheeting 142 – 4” x 6” plastic sheeting
Unit Price
Amount
P1.20 1.90 2.60
P5,268.00 1,596.00 4,914.00 P11,778.00
(Student’s Name) Purchasing Agent
Charge: ACCT. 121 Job________ Dept. ______
Receiving Report Big Manufacturers 123 Molave Street Fairview Ave., QC
Receiving Report
Received From:
Date Received 4/4/08 Purchase Order No. 144 Invoice No. 539
Ship Via Quantity Received 4,390 84 1,890
Small Products 54 West Avenue Cebu City
Fedex
Tansport Charges
Quantity Accepted 4,250 840 1,890
Prepaid Received By
Quantity Rejected 140 -0-0-
403
(Student’s Name)
Description
Weight
103-2”x4” plastic sheeting 102-3”x5” plastic sheeting 103-4”x6” plastic sheeting
425 k 210 k 945 k
Inspection Record Quantity Accepted 4,250 Date
Quantity Returned 140
Reason for Rejection Imperfections in the sheets. Do not replace Inspected by
( Student’s Name)
6 3.
4.
Debit Memorandum Big Manufacturers 123 Molave Street Fairview Ave., QC
Debit Memorandum No.
To:
Date 4/19/2008 Invoice No. 539 Invoice Date 4/17/2008
Small Products 54 West Avenue Cebu City
Quantity
Purchase Order No.
Description
Unit Price
Amount
140
644
103 – 2” x 4” plastic sheeting
P1.20
P168.00
Explanation
Crack in the sheets. Do not replace.
Returned Via
Fedex
085
(Student’s Nam) Purchasing Agent
Disbursement Voucher DISBURSEMENT VOUCHER Big Manufacturers 123 Molave Street Fairview Ave., QC Payee
Voucher No. Issued Date Due Date
0740 4/19/2008 5/27/2008
Small Products 54 West Avenue Cebu City
Invoice Date
Terms
4/17/2008
2/10, n/30
Invoice No. 539 Less DM 085
Amount P 11,778.00 168.00 P 11,610.00
Destribution Account No. 121
5.
Amount P11,610.00
Check No. BPI 000127 Approved By
A request for a purchase must be made by an authorized person. A purchase order must be prepared and approved by an authorized person. All materials must be checked to see that they correspond to the purchase order and are in good condition. Payment is made only after proper approval. Various steps in the purchasing procedures are delegated to different persons to lessen the risk of fraud or error.
7 Problem 2-2 2008 Oct. 24:
25:
Materials Vouchers payable To record voucher to Veterans Corp. On invoice of October 21 for 4,800 units, Of which 510 were returned.
92,235.00
Vouchers payable Purchase discounts Cash To record payment of Voucher 014 Note: No journal entries are needed for the Transactions on October 4, 5, and 21.
92,235.00
92,235.00
922.35 91,131.65
Problem 2-3
VOUCHER REGISTER
Date March
Voucher No. 031 032 033 034
Payable to Lim Supply Company Tan Corporation Sy Company Ong Company
For the Month of March, 2008 Paid Date Check. No.
Voucher Payable Cr 201
Materials Dr. 121
P17,871.00 42,930.50 16,896.00 208,821.00 286,518.50
P17,871.00 42.930.50 16,896.00 208,821.00 286,518.50
