7th

Management Accounting and... QUESTION 5 (20 Marks) 5.1 Using the information provided below, calculate the economic order quantity. (3 Marks) INFORMATION Cleo Thomas Traders sells a product which has an annual demand of 200000 units. This product is purchased from a supplier at R20 per unit. The ordering cost is R10 per order. The holding cost is 5% of the unit purchase price. 5.2 Using the information provided below, answer the following questions. INFORMATION Moletsane Dairies Ltd (MAL) is a company that uses a joint process to manufacture three (3) milk-based products: cream, cheese, and butter. The cream, cheese, and butter are produced, packaged, and sold in units. Total joint costs amount to R856 000. The details of the output of each production run are as follows: Each of the three products can be sold at the split-off point. The sales values at the split-off point are as follows: Alternatively, further processing of each individual product can be undertaken to produce an enhanced product as shown below: Required: Answer the following questions (Note: round off all amounts to the nearest R1): 5.2.1 It is Moletsane Dairies' policy to allocate joint costs to the joint products using the market value at the (4 Marks) split-off point. Determine the allocated joint costs to each of the three joint products. 5.2.2 To derive maximum benefits from its operations, Moletsane Dairies Ltd undertakes further processing of (6 Marks) all three products before selling them. Using the information provided above, calculate the costs of further processing and the sales revenue after further processing for the three joint products. 5.2.3 Prepare a statement of profit or loss for Moletsane Dairies Ltd. Assume that there is no opening or (7 Marks) closing inventory