Question 1:
The following data is supplied to you:
|
MONTH
|
UNITS PRODUCED
|
COSTS
|
|
January
|
1 000
|
R3 800
|
|
February
|
1 060
|
R4 110
|
|
March
|
900
|
R3 560
|
|
April
|
1 100
|
R4 470
|
|
May
|
1 160
|
R4 600
|
|
June
|
1 310
|
R4 995
|
Required
Determine the total fixed cost and the variable cost per unit.
Question 2:
Boing-Boing Ltd has the following figures regarding its inventory:
Cost price per unit R50 per unit
Storage cost per unit R5 per unit
Annual usage 100 000 units
Normal delivery time 2.5 weeks
Insurance cost per unit R5 per unit
Interest rate 9%
Ordering cost for 2 orders R80
Safety inventory 5 000 units
Assume 50 normal working weeks per year, and four weeks per month.
Required Calculate:
(a) EOQ
(b) Number of orders per year
(c) Ordering cost per year
Question 3:
Mr Malan and Mr Edwards are both artisans in a motor manufacturing company. Mr Malan is remunerated at R75 per hour and Mr Edwards at R55 per hour. Both work on average 40 hours per week. The following information is in respect of medical aid and pension fund contributions, by employee and employer, for both employees:
- Medical aid: 5% of normal wage per week for both employer and employee
- Pension fund: 8% per week for both employer and employee
- PAYE: 33% for Mr Edwards and 40% for M. Malan
- Both contribute 1% per week to the unemployment insurance fund
The two persons worked as follows for the week ending 11 May 20X7:
|
|
Edwards Hours
|
Malan
Hours
|
|
Monday 5/5/X7
|
10
|
10%
|
|
Tuesday 6/5/X7
|
10%
|
8
|
|
Wednesday 7/5/X7
|
8
|
8
|
|
Thursday 8/5/X7
|
9%
|
9
|
|
Friday 9/5/X7
|
8
|
8
|
|
Saturday 1015/X7
|
3
|
0
|
|
Sunday 11/5/X7
|
0
|
3
|
Overtime is remunerated as follows:
- Normal overtime: 11/2 times normal time
- Sundays and public holidays: twice the normal time Required
Compile wage sheets for Malan and Edwards.
Question 4:
The production manager of Walt (Pty) Ltd has recently attended a management course where the advantages of variance analysis were discussed. He feels such an analysis would assist in solving problems of budgetary control that arose during the year.
The following information relates to the past year's activities:
Actual manufacturing overheads R175 000.00
Actual direct labour hours 25 000 hours
Budgeted manufacturing overheads R125 000.00
Actual sales R600 000.00
Budgeted direct labour hours 20 000 hours
Actual profit for the year 8185 000.00
Required:
(a) Calculate the predetermined overhead rate. Direct labour hours are used as an allocation base.
(b) Calculate overheads over- or under-absorbed.
(c) Can prime cost be calculated? Substantiate your answer.
Question 5 :
Jane's perfume boutique has recorded the following inventory movement of "Perfect Perfume" in March:
Receipts 2 March 60 bottles at 8140 each
9 March 60 bottles at R147 each
Issues 3 March 50 bottles
10 March 50 bottles
Required
Calculate the following:
a. the value of the 20 bottles closing inventory using the FIFO method and periodic inventory system; and
b. the value of the 20 bottles closing inventory using the weighted average method and perpetual inventory system.
Question 6:
Use the following information to do the calculations below:
| |
R |
|
Direct material purchases
|
750 000
|
|
Indirect material purchases
|
100 000
|
|
Rent
|
130 000
|
|
Indirect labour
|
160 000
|
|
Freight on direct material
|
112 000
|
|
Freight on indirect material
|
20 000
|
|
Direct labour
|
370 000
|
|
Freight on sales
|
70 000
|
|
Packaging of finished product
|
105 000
|
|
Rent received
|
210 000
|
|
Salary: typist
|
111 000
|
|
Advertising
|
40 000
|
|
Insurance
|
215000
|
|
Depreciation: factory
|
300000
|
|
Depreciation: administrative
|
240000
|
Inventory (31/12/20X1):
|
Direct material Indirect material WIP
Inventory (01/01/20X1): Direct material Indirect material WIP
|
120000
50 000
360 000
350 000
80 000
460 000
|
Note: Only 80% of joint manufacturing overheads are applicable to the factory. Indirect material is only used in production.
Required
Calculate the following:
(a) Primary cost
(b) Conversion cost
(c) Manufacturing cost
(d) Cost of goods manufactured
Please help me to complete pre-determined manufacturing overhead and wages