1.1 Use the information provided below to answer the following questions:

Determine the production requirements (in units) for each month of the quarter ending 30 September 2022.

1.1.1 (6 marks) Calculate the expected cost of production for July and August 2022. (3 marks)

INFORMATION The information given below was supplied by Pharma Manufacturers. The expected sales for July to October 2022 are as follows:

Units July 4 000 August 4 500 September 5 000 October 6 000

Finished units equal to 40% of the sales of the following month are expected to be in inventory at the end of each month.

The first-in-first-out method is used to value inventories.

The production cost per unit is expected to amount to R27.50 per unit for August 2022, 10% more than the cost for July 2022.