Problems on Various Elements of Costs

...

- Annual demand 20,000 nos, fixed cost of placing order is Rs 50, unit price is 100 Rs unit carrying cost 8%, Find out EOQ, if trade discount is introduced how this assumption is changed

- A Manufacturing company has received the following transaction of oil during the month of September 15

Date

Particulars

Quantity

UOM

Rate Rs

1

Opening Stock

300

Litres

9.70

5

Purchase

250

9.80

9

Issues

400

14

Purchases

300

10

16

Issues

200

25

Purchase

150

10.5

26

Issues

150

Value issues using FIFO, Weighted average method

- ZEE is a product manufactured out of three raw materials M, N and Q each unit of ZEE requires 10, 8 and 6 of M, N and Q respectively. The reorder levels of M and N are 15000 Kgs and 10000 kgs respectively while minimum level of Q is 2500 Kgs. The weekly production of ZEE varies from 300 to 500 units while weekly average is 400 units. You are required to compute

- Minimum stock level of M

- Maximum stock level of N and

- The reorder level of Q

The following additional data are given

Particulars

M

N

Q

Reorder qty in Kgs

20000

15000

20000

Delivery in weeks

Minimum

2

4

3

Average

3

5

4

Maximum

4

6

5

- Given below the usage and the probabilities for a firm. Calculate the optimum and safety stock, stock out cost is Rs 5 per unit and carrying cost is 50 paise per unit

Usage in units

Probablity

1200

.01

1400

.03

1600

.04

1800

.12

2000

.45

2200

.15

2400

.12

2600

.08

- Classify the following into A, B &C category

Item

Annual usage in units

Price per unit

1

10000

.5

2

200

100

3

400

80

4

7000

1.50

5

1000

1.20

6

1500

.8

7

600

50

8

1200

.4

9

300

.6

10

70

500

11

2000

2.1

12

5000

1.5

- Annual demand for a component is 5000 nos, unit set up cost per batch Rs 75, Annual rate of interest 15%, cost of production per unit Rs 80. Find out Economic Batch Quantity

- A contractor has entered