Typed solutions for MAC1501 ASSIGNMENT 4 2021

MAC1501 ASSIGNMENT 4

1.1.1 Sales units 4 000
Add closing units 2 000
Less opening units (1 000)
Units produced 5 000

1.1.2 RAW MATERIAL ACCOUNT

Bal bld(500x46.5) 23250 Transferred 79 650

Purchases (1500x47) 70 500 Bal cld 14 100

93750 93750



1.1.5 WORK IN PROGRESS ACCOUNT

Bal bld 4 800 cost of sales 225 000

Materials 79650

Direct labour 84 000

Manufacturing overheads 59 300

Purchases (1500x47) 70 500 Bal cld 2750

227 750 227 750



production cost
1.1.4 cost per unit =
production units

222950
=
5000

= 44.59/unit



1.1.3 Cost of manufactured
Materials 79 650
Director labour 84 000
Manufacturing overheads 59 300

222 950

1

, 2 xD X 0 2 x 3825 X 5
1.2.1 EOQ =√ =√
H 0.1 x 15 x 0.2

=√ 22500

= 150 units

D
1.2.2 number of orders =
EOQ

3825
=
150

=25.5

=26 orders

1.2.3 ordering cost = 26 x 5 =R130

EOQ
Holding cost = xH
2

=75 x (0.1x15+0.2)

= R 127.50

1.2.4 ASSUMPTION OF EOQ MODEL

 Purchase price will remain constant
 Annual demand will not change
 Ordering cost per order will remain constant
 Holding cost will remain constasnt


2.1 TOTAL WAGES

Normal wages (25520x24) 612 480

Indirect (4430 x19.50) 86 385

Overtime (2120 x24x1.5) 76 320

(380 x19.5x1.5) 11 115

786 300




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