The Outdoor Store presents the following facts pertaining to the cost of one product carried in its merchandise inventory:
Beginning inventory on hand, 300 units @ $20 = $6,000
Purchase May 19, 700 units @$24 = $16,800
Purchase June 2, 800 units @ $26 = $20,800
Purchase July 20, 200 units @ $30 = $6,000
A physical inventory reveals that 500 units are on hand. If the FIFO method is used with a periodic inventory system, the inventory at the balance sheet should be how much?

Which of the following order quantity techniques tends to most closely couple the MPS and purchasing performance?

A MTS company purchases parts that are unique to the company. The best reason for establishing a received quantity tolerance which closes a remaining open balance on the purchase order is

The reorder point technique is suitable for

Which of the following statements is most true of raw material cycle counting?

If the annual demand is 50,000 units, the ordering cost is $100/order, the carrying cost is 20%, and the unit cost is $5, the annual ordering cost for an order quantity of 2500 is

For which one of the following situations would the periodic review system be most appropriate?

The most likely reason for establishing a financial tolerance when cycle counting is

Inventory that has been superseded by a new model and will never be used or sold at full value is defined as

Period 1 2 3 4 5 6
Gross requirements 20 0 24 12 0 20
Scheduled receipts 0 0 0 0 80 0
Projected available 60
Order quantity: 80
Safety stock: 20
Allocated qty in the first period: 12
Lead time: 2 periods
The projected available for the item at the end of period 1 would be

Using safety lead time for manufactured items will result in