mgt402 assignment solution

QUESTION NO 1
APPLIED FOH 30% OF DL 290,000*30% 87,000.00
APLLID FOH 87,000.00
ACTUAL FOH W1 89,760.00
UNDER APPLIED FOH 2,760.00
ADJUSTMENT TO ENTIRE
PRODUCTION W3
WIP 131.02
FINISHED GOODS 97.11
COST OF GOOD SOLD 2531.87
2,760.00
WORKING 1
ACTUAL FOH
INDIRECT LABOR 46,000.00
LIGHT & POWER 4,260.00
DEPRECIATION 4,700.00
REPAIRS TO MACHINERY 5,800.00
MISC FOH 29,000.00
TOTAL FACTORY COST 819,760.00
WIP OPENING BALNCE 41,200.00
WIP CLOSING BALACNE (42,500.00)
COST OF GOODS MANUFACTURED 818,460.00
FINISHED GOODS OB 34,300.00
FINISHED GOOD CB (31,500.00)
COST GOOD SOLD 821,260.00
WORKING 3
WIP 42,500.00
42500/895260*2760=131.02
FINISHED GOODS 31,500.00
31500/895260*2760=97.11
COGS 821.260 0
895,260.00


ANSWER NO.2
EOQ=SQR2*RU*OC/UC*CC%
EOQ=SQR2*120,00*1,500/60*0.6
EOQ=SQR360,000,000/3.60
EOQ=SQR 100,000,000
EOQ=10,000 UNITS
THERE WILL BE NO EFFECT ON EOQ IF WE REDUCE ORDERING COST AND CARRYING COST BY 2%