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1.2 REQUIRED Use the information provided below to calculate the economic order quantity. ...

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Accounting

1.2
REQUIRED
Use the information provided below to calculate the economic order quantity.
(5 marks)
INFORMATION
Maxwell Wholesalers anticipates sales of 10000 units per month, a purchase price of R40 per unit, an
ordering cost of R12 per order, and a carrying cost of 20% of the unit cost price.
1.3
REQUIRED
Use the information given below to calculate the value of closing inventory as at 31 March 2024 and the value
of issues during March 2024 using the following methods of inventory valuation:
1.3.1 First-in-first-out (5 marks)
1.3.2 Weighted average cost. (Express the average cost per unit in Rands and cents.)(5 marks)
INFORMATION
The following transactions of Seatides Manufacturers took place during March 2024 in respect of a component
used in production:
Date Transactions
01 Opening inventory 800 units @ R20 per unit
07 Purchased from a supplier 1400 units @ R22 per unit
15 Purchased from a supplier 2700 units @ R24 per unit
16 Returned to the supplier (see 15thMarch)200 units
28 Purchased from a supplier 300 units @ R25 per unit
31 Issued to production during March 4000 units

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