3. Which of the following will be completed by a purchasing department when placing orders for inventory from suppliers?
4. J PLC values inventory using the weighted average cost method. The opening balance of inventory for the year commencing on 1st January consisted of 50 units at $10 each. On 5th January 100 units of Inventory was purchased for $12 each and again on the 10th January 50 units were purchased for $11 each. If 40 units of inventory was to be issued, what would be the unit value?
5. What is the economic batch quantity used to establish?
6. Which of the following can happen if too much inventory is held?
7. What is the assumption of the First In First Out method of inventory valuation?
8. The Following relates to the materials transactions for RP PLC for the current period.
Issued to production
Returned to suppliers
Opening inventory was $970. What was the closing inventory at the end of the period?
9. The purchasing manager at JR PLC has received a request from the production department to purchase a particular raw material. What would the production manager then do?
10. Which of the following is an advantage of using Last In First Out(LIFO)?