5, 6, 7 and 8

5) Sports Kits (Pty) Ltd plans to manufacture and sell 36 000 units of its product in the 2020 financial year. Each unit has a total variable cost of R20 (including variable production costs of R17 per unit and variable selling costs of R3 per unit). Fixed costs are R360 000 and the required profit is R180 000 What is the required selling price per unit to achieve this targeted profit? (2) a) R10,00 b) R15,00 c) R20,00 d) R35,00 6) In a process costing quantity statement, if the total of the input column is 200 000 units, the opening WIP of 30 000 units is 60% complete, the closing WIP of 15 000 units is 70% complete and wastage of 3% of inputs occurs when the process is 50% complete, the normal loss in the output column will be: (2) a) 5 100 units. b) 6 000 units. c) 5 550 units. d) 4 650 units. 7) A company should use a job costing system, rather than a process costing system, if: (2) a) The product is manufactured according to the particular client's specifications. b) The product is manufactured in a continuous process. c) The product is intended for the market in general. d) The product comprises of mass-produced homogeneous units. 8) Which of the following is correct about the quantity statement in process costing? (2) a) The quantity statement is the summary of the flow of physical units in a process costing system and will include information about the number of units placed in production, b) The quantity statement is the summary of the flow of physical units in a process costing system and will include information about the cost structure and the rand values. c) The quantity statement is the summary of the flow of physical units in a process costing system and will include information about the rand value of the normal loss. d) The quantity statement is the summary of the flow of physical units in a process costing system and will include information about the rand value of the abnormal loss