ASSIGNMENT: BBA/BCOM MANAGEMENT ACCOUNTING (MAIN) INTAKE

QUESTION 1

(20 Marks)

1.1	REQUIRED
	Calculate the hourly recovery tariff for K. Ntuli from the information provided below.	(4 marks)
	INFORMATION
	The annual basic salary of K. Ntuli is R324 000. She is entitled to an annual bonus of R27 540. Her employer contributes 7.5% of her basic salary to her pension fund. Her normal working week comprises 45 hours (9 hours per day from Monday to Friday). She is entitled to 28 consecutive days paid vacation leave. There are 13 public holidays in the year (365 days), 8 of which fall on weekdays.

1.2	REQUIRED
	Use the information provided below to calculate the total remuneration of each of the three employees (on the first day of June 2017) using Taylors differential piecework system.			(4 marks)
	INFORMATION
	Rambo Ltd uses Taylors differential piecework system to remunerate employees. The following information was extracted from its records on the first day of June 2017:
	Standard production		180 units per hour
	Standard hours per day		9 hours
	Normal wage rate		R90 per hour
	Premium		90% of piecework rate if below standard; 110% of piecework rate if standard or above standard
	Production of employees:
		Mary	1 500 units
		Jill	1 620 units
		Ann	1 980 units

1.3	Use the table and information below to determine the the value of issues between 01 and 15 June 2017 and the value of inventory on 15 June 2017 using the:
1.3.1	First-in-first-out method.	(4 marks)
1.3.2	Weighted average cost method.	(4 marks)

	Purchases			Issues and returns			Balance
Date	Quantity	Price	Amount	Quantity	Price	Amount	Quantity	Price	Amount

	INFORMATION
	Hero Manufacturers made the following material purchases, returns to supplier and issue to production during the first half of June 2017:
		June	Units	Price
	Inventory	01	1 400	R3.00
	Purchases	07	600	R4.00
	Purchases	11	3 000	R5.00
	Return (see 11th)	12	1 000	?
	Issue	15	3 500	?

1.4	REQUIRED
	Use the information provided below to calculate the number of orders that should be placed, based on the annual economic order quantity.	(4 marks)
	INFORMATION
	Maxwell Limited manufactures a product which has a steady monthly demand of 12 000 units. The product requires a component that is purchased from a supplier at R30 per unit. The ordering cost is R1.80 per order. The holding cost is 10% of the unit purchase price.