MAC3701 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE 16 April 2026; 100% Correct solutions and explanations.

MAC3701 Assignment 2 (COMPLETE ANSWERS) Semester 1 2026 - DUE 16 April 2026; 100% Correct solutions and explanations. MAC3701: COMPULSORY ASSESSMENT 01/S1/2026 (2026 academic year) Year Semester Assessment Due date 2026 1 02 16 April 2026 @ 11 pm CAT Take note of the following: • SUBMIT THIS ASSESSMENT ONLY ONLINE VIA myModule. • Ensure that your assessment has been submitted successfully online. Keep a screenshot of your submission page as proof of your online submission. • This assessment weighs 75% in the calculation of your year mark. Refer to TL101 section 7(d) • Study all the learning units as indicated on the module site before answering the assessment. • Complete the assessment within the prescribed time limit of three hours. Practising proper time management when answering questions is always a good idea. This will ensure optimum examination preparation. • This assessment must be submitted strictly on or before the due date. The assessment submission platform closes automatically on the due date; you will therefore not be able to submit after that date. • You are strongly urged to submit your assessment well before the due date to avoid the possibility of technical issues due to high online traffic volumes. • DO NOT send your assessment to the MAC3701 e-mail address. Assessments are only marked online via the myModule platform; therefore, emailed assessments cannot be marked. • In the unlikely event that you experience technical issues; you must immediately notify the lecturers via e-mail at • It is not possible to submit/resubmit your assessment after the due date, and students who did not submit this compulsory assessment will receive a 0% mark. • Refer to section 9.4.2 in Tutorial letter 101. You are reminded that your assessment must be your own work. You will receive 0% for your whole assessment if it was deemed that academic dishonesty has been committed in any part of the assessment and you may be subject to disciplinary proceedings by the University. This includes using artificial intelligence (AI), which is prohibited and deemed academic dishonesty. Ensure you are familiar with the information contained in the following link: [TURN OVER] QUESTION 1 (100 Marks; 180 Minutes) The Company information below applies to Parts A, B, C, D, and E of the exam question paper. The additional information provided in each Part is only applicable to that specific part of the exam question paper. For each Part below, remember: • You must clearly show all your calculations in detail (marks are awarded for calculations); • Where necessary, indicate irrelevant amounts/adjustments with an R0 (nil-value); • Round all your workings to two decimals, except where otherwise stated; and • Ignore time value of money and all taxation implications. Company information CocoNutCo (CNC) (Pty) Ltd operates in South Africa’s agro-processing sector, sourcing raw coconuts primarily from small-scale local farmers to promote sustainable farming and support rural communities. The company has expanded rapidly in recent years and now distributes its products throughout Europe, where growing expectations for ethical sourcing and environmental responsibility have begun to shape customer demand. CNC consists of a head office and two operating divisions: • CocoNutCo Processing Division (PD) • CocoPure Products Division (CPD) Processing Division (PD): The Processing Division has the capacity to process 3 million whole coconuts per year into three identifiable outputs: virgin coconut oil (VCO), fresh coconut water (FCWater) and coconut husk (Husk). VCO and FCWater are treated as joint products, while the Husk is classified as a by-product. Joint costs are allocated using the physical measure method at split-off. The production process involves washing, sorting and manually de-husking coconuts, followed by cracking, water extraction, filtration, and chilling. The coconut flesh is grated and cold-pressed to extract VCO. At the completion of this stage, both VCO and FCWater reach the split-off point. Minor handling and packaging costs are incurred before the Husk is sold to agricultural and horticultural markets. However, the division has recently encountered operational and ethical difficulties. Older workers employed in the labour-intensive de-husking process have reported muscle strain and related injuries. CNC has refused to cover medical expenses, leading to threats of strike action and rising concerns about employee welfare. In addition, adverse weather has pushed some coconut farmers to increase pesticide use, resulting in raw coconuts that fail to meet CNC’s sustainability standards and contributing to higher wastage. CocoPure Division (CPD): The CocoPure Division produces coconut oil cooking spray (COSpray) and flavoured coconut water (FCWater), both aimed at retail consumers. COSpray is made from cold-pressed VCO and positioned as a premium convenience product, while FCWater requires additional filtration, stabilisation, and natural flavouring before packaging. Research activities in this division focus on biotechnology and natural sciences to enhance product quality and promote high-value, wellness-oriented innovations. Despite its innovative focus, CPD has experienced pressure from increasing competition. Low-cost coconut products imported from Thailand have resulted in declining sales, challenging CNC’s ability to maintain its market share and premium positioning. Sourcing, Sustainability and Market Challenges CNC’s commitment to local sourcing has come under strain. Small-scale farmers have expressed dissatisfaction with compensation during periods of supply shortages, leading to the loss of several high-quality suppliers. Reduced supply quality—combined with pesticide-related issues—has led European buyers to question CNC’s sustainability and ethical sourcing practices. Export partners now require formal certification to verify compliance with environmental and ethical standards. Costing System CNC uses an absorption costing system and applies the FIFO method for inventory valuation. The company’s financial year ends on 28 February. Part A (28 Marks; 50 Minutes) The following is the actual information for the PD for the month of December: 1.1 220 000 whole coconuts were processed during the month. Actual yields from