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

What is the differential direct material cost per

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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)
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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)
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