What is the differential direct material cost per month if Jan where to

# What is the differential direct material cost per

• 3

This preview shows page 2 - 3 out of 3 pages.

What is the differential direct material cost per month, if Jan where to manufacture concrete blocks instead of bricks.? (1 ½) 3) What is the differential income per month if Jan sells the bricks rather than the concrete blocks? (1) 4) What is the opportunity cost of the manufacturing of bricks? (1/2) 5) Calculate the direct variable material cost per brick. (3) 6) What will Jan’s fixed overhead cost per month be if he manufactures the concrete blocks? (1) 7) How much of Jan’s cost represent sunk costs? (1/2) 8) Classify the cost to employ Sam as a direct or indirect cost and as a fixed or a variable cost. (1) 9) If Jan’s total demand in a year is 50 000 bricks which therefore represents 10 000 kg of cement and the cost of ordering the cement is R5, calculate the economic order quantity. (1 ½)

Subscribe to view the full document.

10) Jan made the following purchases and distributions of cement during the year: 15 Jan 2011 - 200kg purchased @ R50 per kg 30 Jan 2011 – 200kg purchased @ R53 per kg 15 Feb 2011 – 250kg purchased @ R48 per kg His cement distributions were as follows: 20 Jan 2011 – 100kg 1 Feb 2011 – 200kg 17 Feb 2011 – 250kg a) Using a stores ledger card, calculate the quantity and amount of the closing balance of cement, if Jan uses the First in first out approach. (Continuous inventory system) (4 ½) b) Calculate the quantity and amount of the closing balance of cement, if Jan uses the Weighted average method. (Continuous inventory system) (4) 11) Which inventory valuation method is not allowed by SARS.? (½)
• Summer '17
• MR. MUSHONGA

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes