1. The management accountant estimated that at the end of this year Walilato Ltd will have trade payables of N$547 800 outstanding. This signifies 55 days of purchases based on a 365-day year. All purchases are on account and are spread evenly each year. The accountant of Walilato Ltd is preparing the budget for next year and estimates that annual purchases will increase by 15%. The trade payable days are expected to change from 55 days to 50 days due to several suppliers offering early settlement discounts.

Required: Calculate the budgeted trade payables outstanding at the end of next year.

2. Chineke Ltd managements have presented to you the following information. Budgeted production for the next budget year of 36 000 units. Each unit of production requires four labour hours and the budgeted labour rate is N$12 per hour excluding overtime. You were informed that Idle time is expected to be 10% of total hours available, i.e. including idle time. Due to labour shortages, it is expected that 20% of the hours paid, including idle time, will be paid at an overtime rate of time and a half. . Required: Calculate the total labour cost as per the labour cost budget

3. . Havana Ltd is a production company. It has a small permanent workforce, but it also relies on temporary staff that whenever production requirements increase, it hires on three-month contracts. The buying department of the company is responsible for all acquisitions of products. And the strategy of the company is to maintain low raw material levels in order to reduce inventory keeping costs. On spreadsheets, budgeting is carried out and comprehensive variance reports for revenue, material costs and labor costs are generated each month. Departmental managers, based on their department's results, are then paid a monthly bonus.

Which TWO of the following sentences about using spreadsheets in budgeting are true? (1) Spreadsheets enable managers to consider many different budget options and also carry out sensitivity analysis on the budget figures. (2) Minor errors in the spreadsheet cannot affect the validity of the data. (3) Spreadsheets are able to take qualitative factors into account.

(4) The possibility of experimentation with data is so great that it is possible to lose sight of the original intention of the spreadsheet

4. Cisco Limited applies linear programming in solving limiting resources decisions. The company makes use of material Beta that is sourced from the local market at a price of N$0.80 per kg. The companys objective function in linear programming is to maximise profit. The shadow price of material Beta is N$2 per kg.

The following statement(s) is/are correct: (i) Contribution will be increased by N$2 for each additional kg of material Beta purchased at N$0.80 per kg (ii) The maximum price which should be paid for an additional kg of material Beta is N$2 (iii) Contribution will be increased by N$1.20 for each additional kg of material Beta purchased at N$0.80 (iv) The maximum price which should be paid for an additional kg of material Beta is N$2.80

5. Riana Manufacturing Limited operates a process costing system that incurs a normal loss of 10%. The company budgeted an output of 4 500 litres for the month of December 2020. The closing inventory in November 2020 of material is 600 litres and is expected to increase by 20% by the end of the December 2020. The material usage budget is: a. 4 500 litres b. 5 000 litres c. None of all d. 5 120 litres e. 5 133 litres