QUESTION 2

2.a Name the correct documents involved:

i. Goods receiving department

ii. Bin Card
iii. Material requisition
iv. Price Volatility
v. Invoice to Account Department

B.
Annual demand 1000 units x 50 weeks
(Each desk requires 0.2 meters of = 50000 units of desks
meranti wood)
Cost of placing and receiving RM 50 per order
Carrying cost 5% from its cost (RM1)
Lead time 3 -5 weeks

a. Economic Order Quantity (EOQ) using formula method.

2 ×Total Demand for Period × Ordering Cost per order
EOQ=
Carrying/Cost per Unit

EOQ=
√ 2 ×1000 units ×50 weeks × RM 20
RM 1
EOQ = 1414.21 meters
b. Re-order level = Max Consumption x Max Reorder Period
= 800 unit × 5 weeks
= 4000 meters
c. Maximum Stock level = Reorder Level – (Min Consumption x Min Reorder Period)
+ EOQ
= 4000 meters – ( 300 units × 3 weeks) + 1414.21 meters
= 4511.21 meters
d. Minimum Stock level = Reorder Level – (Normal Consumption x Normal Reorder
Period)

¿ 4000 unit− ( 300unit +2 800unit × 3 weeks+52 weeks )

 = 1800 meters
2b.
Date Details
25 Feb Purchases 1000 kilograms @ RM12.00
per kilogram
28 Feb Purchases 1000 kilograms @ RM13.00
per kilogram
8 Issues to production 2000 packets of
strawberry tart
1 Purchases 1000 kilograms meters @
5 RM13.00 per kilogram
1 Issues to production 1200 packets of
7 strawberry tart
2 Purchases 1200 kilograms meters @
4 RM13.50 per kilogram
2 Returned 100 kilograms strawberry
5 purchased
on 24 March to the supplier due to
damage.
3 The month-end stock count revealed that
1 10 kilograms of strawberry have gone bad
and needed to be written off

STORE LEDGER CARD FOR THE MONTH OF NOVEMBER 2019

Date Receipts Issues Balance

Units Price Total Units Price Total Units Price Total

31/10             1000 RM15 RM15,000

3 300 RM15.50 RM4,650.00       1000 RM15 RM15,000

            300 RM15.50 RM4,650.00

6       700 RM15.00 RM10,500.00 - - -

            300 RM15 RM4,500

            300 RM15.50 RM4,650.00

9 600 RM16.00 RM9,600.00       300 RM15.00 RM4,500.00

            300 RM15.50 RM4,650.00

            600 RM16.00 RM9,600.00

12 900 RM16.50 RM14,850.00       300 RM15.00 RM4,500.00

            300 RM15.50 RM4,650.00

            600 RM16.00 RM9,600.00

             900 RM16.50 RM14,850.00

15       150 RM16.00 RM2,400.00 - - -

            450 RM16.00 RM7,200.00

            300 RM15.00 RM4,500.00

            300 RM15.50 RM4,650.00

            900 RM16.50 RM14,850.00

18       300 RM15.00 RM4,500.00 - - -

      300 RM15.50 RM4,650.00 - - -

      400 RM16.00 RM6,400.00 50 RM16.00 RM800.00

            900 RM16.50 RM14,850.00

27       50 RM16.00 RM800.00 - - -

      550 RM16.50 RM9,075.00 350 RM16.50 RM5,775.00

30                  
QUESTION 3
Employee Type Hours Units produced Units rejected
worked Board Learning Board Learning
Game Kit Game kit
Sufian Skilled 45 60 80 2 -
Arul Skilled 43 55 60 - 2
Hafiz Semi-skilled 50 50 30 5 4

i. Rate per hour for skilled and semi-skilled are RM 8.50 and RM7.00 per hour
respectively
ii. Overtime is paid at a rate of a time and a half of the normal hourly rate.
iii. Time allowed per good unit is categorized according to worker's grade:
Product Grade Standard time in
minutes
Board Game Skilled 30 minutes
Semi-skilled 40 minutes
Learning Kit Skilled 24 minutes
Semi-skilled 30 minutes

iv. Bonus will be paid on individual basis. The bonus is calculated based on time
saved at 40% of the normal hourly rate.

a. Calculate the total wages for all employee for the fourth week of December
2019.

Sufian:
Basic Wage = 40 hours × RM8.50
= RM 340
Overtime = Hours worked – Normal hours
= 45 – 40 = 5 hours
Overtime payment = Basic OT + OT Premium
= (5 hours × RM8.50) + (5 hours ×RM8.50×1/2)
= RM 63.80
Total wage = Basic wage + Overtime
= RM340 + RM 63.80
= RM403.80

Arul:
Basic Wage = 40 hours × RM8.50
= RM 340
Overtime = Hours worked – Normal hours
= 43 – 40 = 3 hours
Overtime payment = Basic OT + OT Premium
= (3 hours × RM8.50) + (3 hours ×RM8.50×1/2)
= RM 38.25
Total wage = Basic wage + Overtime
= RM340 + RM 38.25
= RM 378.25

Hafiz:
Basic Wage = 40 hours × RM7.00
= RM 280
Overtime = Hours worked – Normal hours
= 50 – 40 = 10 hours
Overtime payment = Basic OT + OT Premium
= (10 hours × RM7.00) + (10 hours ×RM7.00×1/2)
= RM 105
Total wage = Basic wage + Overtime
= RM 280 + RM 105
= RM 385
Therefore, the total wages for all employee for the fourth week of December
2019 is

= RM 403.80 + RM 378.25 + RM 385

= RM 1167.05

b. Identify FOUR (4) advantages of group bonus scheme.

i. It Encourage team-spirit among members and easier to administer

ii. Increase production helps to reduce overhead per unit
iii. Helps to improve morale because effort is rewarded
iv. Helps to attract more efficient workers because of the opportunity to
earn higher wage.