Question
4.1 Study the information provided below and answer the following questions. Radasys Suppliers anticipates annual sales of 144 000 units of a product. Radasys sells
4.1 Study the information provided below and answer the following questions. Radasys Suppliers anticipates annual sales of 144 000 units of a product. Radasys sells the product at R45 per unit, using the pricing formula: cost plus 50%. The ordering cost is R30 per order and the carrying cost of 5% of the unit purchase price. REQUIRED: 4.1.1 Calculate the number of orders that must be placed during the year based on the most advantageous quantity for the firm to order each time. (5 Marks) 4.1.2 Calculate the total annual ordering and carrying costs of the product. (3 Marks) 4.2 Study the information provided below and answer the following questions. INFORMATION The data below relates to the production process of a small business. R Input 5 000 kg of materials costing 600 000 Labour costs 100 000 Expenses cost 200 000 Overhead cost 100 000 Additional information: Normal loss is estimated to be 10 per cent of input. Losses are sold as scrap for R50 per kg. Actual output was 4 700 kg. REQUIRED: Prepare the following accounts: 4.2.1 The process account. (6 Marks) 4.2.2 The scrap account. (3 Marks) 4.2.3 The abnormal account. (3 Marks
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