QUESTION 1

Comel Bhd is a company that buys and sells computers. On 1 June 2013 it had 200 unsold computers in stock, each valued at RM800.

During June, the company received deliveries as follows:

 Date Number of computersreceived Unit cost Marketprice 9 100 RM900 RM 1,000 18 200 RM1,000 RM 1,200 22 100 RM1,100 RM 1,300

Also in June, the sales of computers were as follows:

 Date Number of computers sold 13 200 19 250 27 100
• Prepare the Goods Ledger Card using the following methods:
• LIFO (12 marks)
• FIFO (12 marks)
• Describe (do not calculate) how LIFO and FIFO affect the cost of goods sold and the valuation of closing stock:
• when purchase prices are rising; (3 marks)
• when purchase prices are falling (3 marks) (Total :30 marks)

QUESTION 2

The following information relates to a component used in the manufacture of a single product:

 Re-order quantity 2, 900 units Usage per week Maximum 1,100 units Minimum 900 units Estimated delivery period Maximum 4 weeks Minimum 2 weeks REQUIRED
• Using the above data calculate the:
• Re-order level
• Maximum stock level
• Minimum stock level
• Average stock
• Explain the purpose of setting the re-order level, maximum stock level and minimum stock level (9 marks)

QUESTION 3

• Wong Limited provides the following data for the year ending 31 December 2012
 Finished goodsExpected sales (units): A B Johor 2,000 3,000 Melaka 1,500 2,500 Planned ending stock 500 600 Beginning stock 300 350

REQUIRED:

Prepare a production budget for the year (10 marks)

• Additional information for Wong Limited is as follows:
 Direct materials Z11 Y22 Beginning stock (units) 500 600 Planned closing stock (units) 400 1,000 Cost per unit \$5 \$8 Each unit of Product A requires 3 units of Z11 and 2 units of Y22 Each unit of Product B requires 2 units of Z11 and 1 units of Y22

REQUIRED: Prepare a materials budget for the year in both units and \$. (15 marks)

QUESTION 4

• Explain what is “Just In Time” inventory (10 marks)

Explain the advantages and problems of JIT system (10 marks)