Costing Material chapter Questing

ROQ = 100 Units, Max Usage = 50 Units, Max Level = 100 Units, Min LT = 2 Weeks

Find Min Level, ROL & Avg Level.

Plz tell me how to solve this Question.

Thanks in Advance

R SHRIRAM

Replies (2)

in ur ques figures are not supporting to the concept of this chapter... either u have manipulated with data or misrepresented data....

as max lvl can not be equal to ROQ.. it should be more than ROQ

coz MAX LVL = ROQ + ROL - (MIN USG* MIN LT)

so as per ur data ROL = MIN USG * MIN LT

which seems not to be good....

plz check it out once again. even if u find no change then leave the ques. n concentrate on another one.
 

Sorry sir I am not manipulated with data I took this Question from a book, but I have the solution in the same book which I cant able to understand so to know the easy way to solve the probs I posted in this Form. Here is the solution given in the book.

Sol: Avg Lvl = (Min Lvl + Max Lvl)/2 

        Avg Lvl = Min Lvl + (ROQ/2)

Therefore (Min Lvl + Max Lvl)/2 = Min Lvl + (ROQ/2)

When Multiplying by 2

     Min Lvl + Max Lvl = 2(Min Lvl) + ROQ

     Max Lvl = 2(Min Lvl) - Min Lvl + ROQ

     Max Lvl = Min Lvl + ROQ

Or Min Lvl = Max Lvl - ROQ

So Min Lvl =100-100 = 0

As Min Lvl = 0 = ROL - (Avg Usage * Avg LT)

So ROL = Avg Usage * Avg LT

As Max Lvl = ROQ = 100, ROL = (Min Usage * Min LT)

So Avg Usage * Avg LT = Min Usgae * Min LT

Therefore Avg Usage * Avg LT = Min Usage * Min Usage = Max Usage * Max LT

So Min Usage = Max Usage = Avg Usage & Min LT = Max LT = Avg LT

ROL = Avg Usage * Avg LT = 50(Max Usage in Ques) * 2 (Min LT in Ques) = 100

Min Lvl = ROL - Avg LT

So Min Lvl = 0

Avg Lvl = (0+100)/2 = 50

ROL = 100, Min Lvl = 0 Avg Lvl =50

Thanks

R Shriram

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER

Anupam Parashar & Co.

Ghaziabad

CA Final

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details