QUESTION $1$

$1\mathrm{.}1$ REQUIRED

Study the information provided below and determine whether Neston Traders should borrow the cash to settle the account. Motivate your answer by calculating the cost of forfeiting the discount $($expressed as a percentage to two decimal places$).$

INFORMATION

Neston Traders purchased inventory on credit for R$30000.$ The supplier offered Neston Traders the option to settle the account by paying R$28800$ up to $10$ days after the sale or pay R$30000$ by the end of $60$ days. Neston Traders can borrow cash from its bank at a rate of $18$ percent per annum to settle the account within $10$ days.

$1\mathrm{.}2$

REQUIRED

Use the information provided below to calculate the economic order quantity.

INFORMATION

Maxwell Wholesalers anticipates sales of $10000$ units per month, a purchase price of R$40$ per unit, an ordering cost of R$12$ per order, and a carrying cost of $20\%$ of the unit cost price$\mathrm{.}1\mathrm{.}3$

REQUIRED

Use the information given below to calculate the value of closing inventory as at $31$ March $2024$ and the value of issues during March $2024$ using the following methods of inventory valuation:

$1\mathrm{.}3\mathrm{.}1$ First$-$in$-$first$-$out

$1\mathrm{.}3\mathrm{.}2$ Weighted average cost. $($Express the average cost per unit in Rands and cents.$)$

INFORMATION

The following transactions of Seatides Manufacturers took place during March $2024$ in respect of a component used in production:

$\backslash$table$[[$Date$,$Transactions,$],[01,$Opening inventory,$800$ units @ R$20$ per unit$],[07,$Purchased from a supplier,$1400$ units @ R$22$ per unit$],[15,$Purchased from a supplier,$2700$ units @ R$24$ per unit$],[16,$Returned to the supplier $($see $15$th March$),200$ units$],[28,$Purchased from a supplier,$300$ units @ R$25$ per unit$],[31,$Issued to production during March,$4000$ units$]]$