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
1 Dec. Opening balance 500 units @ GH¢25 per unit
3 Dec. Issue 70 units
4 Dec. Issue 100 units
8 Dec. Issue 80 units
13 Dec. Received from supplier 200 units @ GH¢24.50 per unit
14 Dec. Returned to store 15 units @ GH¢24 per unit
16 Dec. Issue 180 units.
20 Dec. Received from supplier 240 units @ GH¢24.75 per unit
24 Dec. Issue 304 units.
25 Dec. Received from supplier 320 units @ GH¢24.50 per unit
26 Dec. Issue 112 units
27 Dec. Returned to store 12 units @ GH¢24.50 per unit
28 Dec. 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.
Required
You are required to calculate the following each of the components:
(i) Minimum Stock Level
(ii) Maximum Stock Level
(iii) Average Stock Level
(iv) Re-ordering Level