0840037031_209389 - CHAPTER 2 SOLUTIONS Part I 1. 2. 3. 4....

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Part I Part II 1. T 8. F 15. T 1. o 8. a 15. g 2. T 9. F 16. F 2. s 9. b 16. l 3. F 10. T 17. T 3. e 10. c 17. k 4. T 11. T 18. F 4. p 11. q 18. i 5. F 12. T 19. T 5. r 12. n 19. j 6. T 13. T 20. T 6. d 13. f 20. h 7. T 14. F 7. t 14. m Part III 1. (b) If normal spoilage is caused by exacting specifications, difficult processing, or other unusual and unexpected factors, the spoilage cost should be charged to that job. 2. (d) Since under FIFO the earliest goods purchased are the first goods considered to be sold, the most recently purchased merchandise would be assignable to inventory. 3. (c) Because one focus of lean manufacturing is to reduce inventory levels, product obsolescence is reduced as it is less likely that inventory in on hand for long periods of time. 4. (a) If the inventory cost on the balance sheet was higher using FIFO than LIFO, the most recent purchases (which would appear on the balance sheet under FIFO) were more expensive than the earlier purchases (which would appear on the balance sheet using LIFO). 5. (c) 2CN K 2 50,000 $6.25 $10 = 250 = × × 6. (a) 175 units × 8 days = 1,400 safety stock +1,000 2,400 7. (c) A storeroom keeper makes sure materials are properly stored and maintained. This includes monitoring quantities on hand. 8. (d) If the additional costs for correcting the imperfections in defective units are incurred on orders that the company regularly processes, they are charged to factory overhead. 9. (a) The EOQ is that point where carrying costs equal order costs. If a quantity smaller than the EOQ is ordered, ordering costs will exceed carrying costs. 10.
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This note was uploaded on 12/29/2011 for the course ACC 109 taught by Professor Diyco during the Spring '11 term at Ateneo de Manila University.

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0840037031_209389 - CHAPTER 2 SOLUTIONS Part I 1. 2. 3. 4....

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