1.1

REQUIRED

Study the information given below and draw up the Production Budget for January and February 2024.

INFORMATION

The number of units of Product X expected to be sold by Questor Manufacturers and the desired closing inventory (in units) for the period 01 December 2023 to 28 February 2024 is given below:

Month Sales Closing Inventory

December 2023 24 000 6 000

January 2024 16 000 5 400

February 2024 14 000 5 000

1.2

REQUIRED

Calculate the following from the information provided below:

1.2.1 Value of closing inventory using the first-in-first-out (FIFO) method

1.2.2 Value of issues to production using the first-in-first-out (FIFO) method

1.23 Value of closing inventory using the weighted average cost method

INFORMATION

The following transactions of Gem Manufacturers took place during August 2022 in respect of a component used in production:

1.3

REQUIRED

Use the information given below to calculate the most economic quantity to order each time for 2023 (expressed to next whole number).(5 marks)

INFORMATION

Milton Wholesalers expects to sell approximately 3 600 cases of soap per month during 2023. Each case of soap costs R200. The cost of placing an order for soap is estimated to be R20. The inventory holding cost of one case of soap is 5% of the unit purchase price.

\begin{tabular}{|l|l|l|} \hline Aug & & \\ \hline 01 & Opening inventory & 1000 units at R20 per unit \\ \hline 11 & Purchased from a supplier & 3000 units at R21 per unit \\ \hline 17 & Purchased from a supplier & 1800 units at R22 per unit \\ \hline 18 & Returnedtothesupplier(see17August) & 800 units \\ \hline 31 & IssuestoproductionduringAugust & 3800 units \\ \hline \end{tabular}