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    Anne Bustillo
    The document discusses concepts related to inventory management including just-in-time systems, backflush costing, reorder points, economic order quantities, and maximum lead times. Specifically, it provides details on the calculation of backflushing costs, reorder points, and maximum lead times. It also discusses the differences between just-in-time and MRP systems, and how to treat costs such as freight and defective units for inventory valuation.

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    SW

    Uploaded by

    Anne Bustillo
    105 views1 page
    The document discusses concepts related to inventory management including just-in-time systems, backflush costing, reorder points, economic order quantities, and maximum lead times. Specifically, it provides details on the calculation of backflushing costs, reorder points, and maximum lead times. It also discusses the differences between just-in-time and MRP systems, and how to treat costs such as freight and defective units for inventory valuation.

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    The document discusses concepts related to inventory management including just-in-time systems, backflush costing, reorder points, economic order quantities, and maximum lead times. Specifically, it provides details on the calculation of backflushing costs, reorder points, and maximum lead times. It also discusses the differences between just-in-time and MRP systems, and how to treat costs such as freight and defective units for inventory valuation.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    105 views1 page

    SW

    Uploaded by

    Anne Bustillo
    The document discusses concepts related to inventory management including just-in-time systems, backflush costing, reorder points, economic order quantities, and maximum lead times. Specifically, it provides details on the calculation of backflushing costs, reorder points, and maximum lead times. It also discusses the differences between just-in-time and MRP systems, and how to treat costs such as freight and defective units for inventory valuation.

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    © All Rights Reserved
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    of 1

    The costs to be offset against the savings from lower The purchase requisition is a document used to: inform

    work in process levels in a JIT system include all of the the purchasing agent of a need for a materials item
    following, except: the possibility of customer
    The receiving department does all of the following
    dissatisfaction due to slower response time to orders
    except: keeps informed concerning sources of supply,
    The cost accounting system that is noted for its lack of prices, and delivery schedules
    detailed tracking of work in process during the
    A company has been ordering more than the economic
    accounting period is: backflush costing
    order quantity. This would result in: carrying costs
    In backflush costing, if the conversion cost in the Raw greater than order costs
    and In Process was Php500 on July 1 and Php1,000 on
    An inventory control technique that reviews quantities
    July 31, the account to be credited at the end of July for
    on hand periodically and orders sufficient quantities to
    the Php500 increase would be: Cost of Goods Sold
    bring inventory up to a desired level expressed as a
    YGG Company has materials cost in the June 1 Raw and number of days' or weeks' supply is the: order cycling
    In Process of Php10,000, materials received during June method
    of Php205,000 and materials cost in the June 30 Raw
    The method of inventory pricing that best approximates
    and In Process of Php12,500. The amount to be
    specific identification of the actual flow of costs and
    backflushed from Raw and In Process to Finished Goods
    units in most manufacturing situations is: FIFO
    at the end of June would be: 202 500
    The following information pertains to Jon Snow
    205 000 + 10 000 – 12 500
    Coporation’s Material A
    In backflush costing, if the conversion cost in Raw and In
     
    Process was Php1,000 on March 1 and Php400 on
    March 31, the account to be credited for the Php600 Annual Usage  25,200 units
    decrease would be: Raw and In Process
    Working days per year  360 days
    JIT purchasing eliminates all of the following
    documents, except: blanket purchase orders Normal lead time in working days  30 days

    Under a JIT approach to purchasing, the ideal number of Safety stock  1,050 units
    vendors for each material is: one
     
    To backflush materials cost from Raw and In Process
    (RIP) to Finished Goods, the calculation would be: What us the maximum lead time in working days? 45
    materials in beginning RIP inventory plus materials days
    received during the period minus materials in ending Using the same information in Question 6, compute for
    RIP inventory the reorder point for Material A. 3,150 units
    The continuing reduction of inventories is achieved by According to the net method, which of the following
    all of the following steps except: once the problem is items should be included in the cost of inventory?
    removed, the inventory level is increased until another
    problem is discovered 1. Freight Cost Yes

    I. Just-in-time (JIT) production, is a "demand-pull" 2. Purchase Discount not Taken No


    manufacturing system that manufactures each
    Which is true about Spoiled Units? To compute for new
    component in a production line as soon as, and only
    unit cost, WIP balance will be divided by remaining
    when, needed by the next step in the production line. T
    good units
    II. Just-in-time systems are similar to materials
    Which is false about Defective Units? Allowance for
    requirement planning systems in that both systems are
    defective units is usually included in the total unit cost
    demand-pull systems. F
    in order to meet customer specifications

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