#GPT-3.5 | Conversation #1122895297849339956
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From the foliowing calculate ordering level, Minimum usage-100 units per weekn Maximum usage-200 units per weekn Normal usage- 150 units per weekn Ordering Quantity-500 unitsn Delivery period-2-4 weeks
To calculate the ordering level, you need to consider the minimum, maximum, and normal usage as well as the delivery period. Here's how you can do it:
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Calculate the average usage per week:
Average usage = (Minimum usage + Maximum usage) / 2
Average usage = (100 + 200) / 2
Average usage = 150 units per week -
Calculate the lead time demand for the delivery period:
Lead time demand = Average usage * Delivery period
Lead time demand = 150 * (4 - 2)
Lead time demand = 300 units -
Add the lead time demand to the normal usage:
Ordering level = Normal usage + Lead time demand
Ordering level = 150 + 300
Ordering level = 450 units
Therefore, the ordering level would be 450 units.
Options are 800units, 1100units, 1300units, 1500units
If the options for the ordering quantity are 800 units, 1100 units, 1300 units, and 1500 units, you would select the option that is equal to or greater than the calculated ordering level. In this case, the ordering level was calculated as 450 units.
Among the given options, the ordering level of 450 units falls within the range of 800 units. Therefore, you would choose the option of 800 units as the ordering quantity.
Given data: Units produced are 12.000: units sold are 10,000: cost of production is Rs.24 per unit: Opening stock of finished goods of 2.000 units is worth Rs.40.000. Then the cost of goods sold is
Rs.2.40.000
Rs.2,32,000
Rs.2,88,000
Rs.3,28,000
To calculate the cost of goods sold (COGS), we need to consider the units produced, units sold, and the opening stock of finished goods. Here's how we can calculate it:
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Calculate the value of the opening stock:
Value of opening stock = Opening stock * Cost per unit
Value of opening stock = 2,000 units * Rs. 24 per unit
Value of opening stock = Rs. 48,000 -
Calculate the cost of goods available for sale:
Cost of goods available for sale = Value of opening stock + Cost of production
Cost of goods available for sale = Rs. 48,000 + (12,000 units * Rs. 24 per unit)
Cost of goods available for sale = Rs. 48,000 + Rs. 2,88,000
Cost of goods available for sale = Rs. 3,36,000 -
Calculate the cost of goods sold:
Cost of goods sold = Cost of goods available for sale - Value of closing stock
Value of closing stock = (Units produced - Units sold) * Cost per unit
Value of closing stock = (12,000 - 10,000) * Rs. 24 per unit
Value of closing stock = 2,000 units * Rs. 24 per unit
Value of closing stock = Rs. 48,000Cost of goods sold = Rs. 3,36,000 - Rs. 48,000
Cost of goods sold = Rs. 2,88,000
Therefore, the cost of goods sold is Rs. 2,88,000.
A company had purchased an item X for Rs.10 per kg. Its current market price is Rs. 12 per kg. The replacement cost of X would be Rs.
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