Please assist with my cost and management accounting assignment. I am doing distant learning and do not attend lectures. I don't understand the formulas.

CMA1112/2017/2/A Cost and Management Accounting Compulsory Assignment for October 2017 Examination This assignment consists of 4 pages Due Date: 31 May 2017 Examiner: L. Ndlovu Moderator: Marks: M. Dera 100 INSTRUCTIONS: 1. 2. 3. 4. 5. 6. 7. 8. Answer ALL the questions. Write neatly and legibly. Number your answers correctly. Read the questions thoroughly. Use the allocation of marks for each question as a guideline to how to structure your answer. Only make use of black or blue pen. Typed assignments are allowed. Allow a space of 8 lines between the answers to each question of the assignment. NO Tipp-ex or similar products may be used. Note to Student: In completing this assignment you are encouraged to discuss it with colleagues and fellow students and to read widely on the subject. However, the final product must be your own work. All quotations (from books or the internet) must be properly identified and referenced in your assignment. Any sign of collusion (\"copying\") with another student may result in both learners being awarded 0% and being prevented from writing examinations. No more than 40% will be awarded for any answer that is just copied from your study guide. You MUST answer all the questions in your own words. [Please be reminded that from 2013 onwards, a sub-minimum of 40% will apply to examinations. Please check your calendar for details.] Page 1 of 4 QUESTION 1 (22 MARKS) HTL Limited manufactures and sells a single product. The following statement of comprehensive income for the year ended 31 March 2015 was compiled using the marginal costing method: R Sales (5 000 units) Less: Variable cost Direct materials. Direct labour Variable overheads Variable selling and administrative expensesincome Marginal Less. Fixed costs Manufacturing Selling and administrative Net income 1 000 000 570 000 180 000 140 000 150 000 100 000 430 000 301 000 245 000 75 000 129 000 No inventory was held for the year under review REQUIRED: 2.1 Calculate the following for the year ended 31 March 2015: 2.1.1 The marginal income per unit 2.1.2 The marginal income ratio 2.1.3 The break-even point in units 2.1.4 The break-even point in Rand value 2.1.5 The margin of safety in units 2.1.6 The margin of safety in rands (2) (2) (2) (2) (2) (2) 2.2 By using the figures for the year ended 31 March 2015, assume that in the forthcoming year there is an increase of 5% in the selling price and an increase in both the direct labour costs and direct material costs of 10%. All other costs are expected to remain unchanged during the year ending 31 March 2016. Calculate the following for the year ending 31 March 2016: 2.2 1 The marginal income per unit (5) 2.2.2 The number of units that must be sold in order to earn a profit of 8340 950 (5) QUESTION 2 (25 MARKS) JJC Limited is preparing its monthly budgets for the months of November 2016 and December 2016. The company manufactures and sells a single product, which has a selling price of R600. The budgeted sales in units are as follows: Month Units October 75 000 November 60 000 December 45 000 January February 60 000 30 000 The following additional information is available: Page 2 of 4 Each unit of finished product manufactured requires four kilograms of material D. This material is purchased from an outside supplier at R24.75 per kilogram. Each unit of finished product requires three labour hours at the labour rate of R60.00 per hour. Variable manufacturing overhead varies with direct labour hours worked at the rate of R30.00 per hour. Fixed overhead cost were estimated at R1 000 000 per month. The closing inventories of finished goods are expected to be 20% of the following month's budgeted sales. The opening inventory of finished goods for November was 12 000 units. The company wants to maintain monthly closing inventories of Material D equal to 15% of the next month's production requirements. However, on 31 October this target had not been attained since only 24 000 kilograms of material D were on hand. REQUIRED: Prepare the following operational budgets for the months of November and December 2016. 1.1 Sales budget (in Rands) (4) 1.2 Production budget (in units) (8) 1.3 Material purchase budget (in Rands) (6.5) 1.4 Direct labour budget (in Rands) (3.5) 1.5 Manufacturing overhead budget (in Rands) (3) Question 3 (24 Marks) The following data are available for October 20X1 in the Cutting and Assembly Department: Production data: Opening WIP: 100 Units started in process during the period 600 Units completed during the period 500 Closing WIP 200 Cost data: R Opening WIP: Material 2 000 Labour 900 Overheads 900 Costs added during the current period: Materials 13 500 Labour 4 500 Overheads 7 800 Stage of completion of opening WIP: % Material 80 Labour 40 Overheads 60 Page 3 of 4 Stage of completion of closing WIP: Material 60 Labour 20 Overheads 40 Required Draft a process cost report September 2016 using the weighted average method of inventory valuation. Clearly show the following: 3.1 Quantiy schedule 3.2 Cost statement 3.2 Cost allocation statement QUESTION 4 (29 Marks) Dash Ltd manufactures one product. On I May 2016, Dash had 1 040 units in inventory. It produced another 3 740 units during March and there were 760 units in the store room at the end on March 2016. The following actual information is available for March 2016: Direct material per unit Direct Labour per unit Commission on sales Fixed administrative overheads Fixed production overheads Variable production overheads per unit Selling price per unit R11.90 R6.60 R2.5% R30 000 R28 000 R5.10 R65.06 Cost of the opening inventory is the same as that for March except for direct labour cost, which increased by 10% per unit in March from the February level. The budgeted fixed production overheads for the pear is R364 800 and is based on an annual production level of 45 600 units. Overheads are allocated according to production units method. All manufacturing variances are written off to cost of goods manufactured in the period in which they incurred. Required 4.1 Compile the income statements according to the direct and absorption methods. 4.2 Reconcile the difference in net income between the two methods. Show all calculations. Page 4 of 4