SECTION A Answer ALL the questions in this section. QUESTION ONE [30 MARKS] Selling price (per unit) Units in opening inventory Units manufactured 1.1 Calculate the economic order quantity (EOQ) per annum. Economic order quantity (5 marks) Units sold Startrek Secondary School purchases 700 math's sets per annum. The cost of each math set is R80. Each set is sold for R100. The cost of placing a single order is R45. The holding cost is 11% of the unit purchase price. 1.2 Calculate the value of closing inventory using the Weighted average cost inventory valuation method (5 marks) Inventory valuation The following information concerning blankets appeared in the journal of Casio Traders for the month of September 2022: Date Details Units Cost per unit 1 Opening inventory 20 R85 Units in closing inventory Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs: 7 Purchases 16 Purchases 25 Purchases 23 R$0 33 R95 18 R100 Fixed manufacturing overhead Fixed selling and administrative R115 500 2550 3 050 100 R12,00 R50,00 R8.50 R10,00 R81 000 R19 000 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. 31 Sales for the month 69 (where applicable, round off amounts to two decimal places) 2.1 Calculate the unit product cost for the month under marginal costing. (3 marks) 22 Calculate the unit product cost for the month under absorption costing (3 marks) QUESTION TWO Read the case study below and answer the questions that follow. 23 Prepare an income statement for the month using the absorption costing method. (7 marks) 24 Prepare an income statement for the month using the Marginal costing method. (7 marks) Hendry Limited produces a mini-kitchen called Town Cook, which is enjoying extensive popularity amongst young children. The following data is available for the month: