FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following is the summary of the receipts and issues of material in a Special Ice factory during December 2020. Prepare Store Ledger according to First in First Out Method.
December 2020
Dec 1. Opening balance 500 units @ GH¢25 per unit
Dec 3. Issue 70 units
Dec 4. Issue 100 units
Dec 8. Issue 80 units
Dec 13. Received from supplier 200 units @ GH¢24.50 per unit
Dec 14. Returned to store 15 units @ GH¢24 per unit
Dec 16. Issue 180 units.
Dec 20. Received from supplier 240 units @ GH¢24.75 per unit
Dec 24. Issue 304 units.
Dec 25. Received from supplier 320 units @ GH¢24.50 per unit
Dec 26. Issue 112 units
Dec 27. Returned to store 12 units @ GH¢24.50 per unit
Dec 28. Received from supplier 100 units @ GH¢25 per unit
b. Two components P, Q are used as follows.
Normal usage 1000 units per week each.
Re-ordering quantity P - 20,000 units
Q - 8,000 units
Re-ordering period P - 4 to 6 weeks
Q - 2 to 4 weeks
The minimum usage is 2000 units per week; with their maximum usage being 3000 units per week each.
You are required to calculate:
(i) Minimum Stock Level
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