The costs to be offset against the savings from lower The purchase requisition is a document used to: inform

work in process levels in a JIT system include all of the the purchasing agent of a need for a materials item
following, except: the possibility of customer
The receiving department does all of the following
dissatisfaction due to slower response time to orders
except: keeps informed concerning sources of supply,
The cost accounting system that is noted for its lack of prices, and delivery schedules
detailed tracking of work in process during the
A company has been ordering more than the economic
accounting period is: backflush costing
order quantity. This would result in: carrying costs
In backflush costing, if the conversion cost in the Raw greater than order costs
and In Process was Php500 on July 1 and Php1,000 on
An inventory control technique that reviews quantities
July 31, the account to be credited at the end of July for
on hand periodically and orders sufficient quantities to
the Php500 increase would be: Cost of Goods Sold
bring inventory up to a desired level expressed as a
YGG Company has materials cost in the June 1 Raw and number of days' or weeks' supply is the: order cycling
In Process of Php10,000, materials received during June method
of Php205,000 and materials cost in the June 30 Raw
The method of inventory pricing that best approximates
and In Process of Php12,500. The amount to be
specific identification of the actual flow of costs and
backflushed from Raw and In Process to Finished Goods
units in most manufacturing situations is: FIFO
at the end of June would be: 202 500
The following information pertains to Jon Snow
205 000 + 10 000 – 12 500
Coporation’s Material A
In backflush costing, if the conversion cost in Raw and In
 
Process was Php1,000 on March 1 and Php400 on
March 31, the account to be credited for the Php600 Annual Usage  25,200 units
decrease would be: Raw and In Process
Working days per year  360 days
JIT purchasing eliminates all of the following
documents, except: blanket purchase orders Normal lead time in working days  30 days

Under a JIT approach to purchasing, the ideal number of
vendors for each material is: one
To backflush materials cost from Raw and In Process
(RIP) to Finished Goods, the calculation would be:
materials in beginning RIP inventory plus materials
received during the period minus materials in ending
RIP inventory
The continuing reduction of inventories is achieved by
all of the following steps except: once the problem is
removed, the inventory level is increased until another
problem is discovered
Safety stock  1,050 units
What us the maximum lead time in working days? 45
days
Using the same information in Question 6, compute for
the reorder point for Material A. 3,150 units
According to the net method, which of the following
items should be included in the cost of inventory?
1. Freight Cost Yes

I. Just-in-time (JIT) production, is a "demand-pull" 2. Purchase Discount not Taken No

manufacturing system that manufactures each
Which is true about Spoiled Units? To compute for new
component in a production line as soon as, and only
unit cost, WIP balance will be divided by remaining
when, needed by the next step in the production line. T
good units
II. Just-in-time systems are similar to materials
Which is false about Defective Units? Allowance for
requirement planning systems in that both systems are
defective units is usually included in the total unit cost
demand-pull systems. F
in order to meet customer specifications