Answer ALL questions in this paper.

$[100$ MARKS$]$

QUESTION $1$

$(20$ Marks$)$

$1\mathrm{.}1$

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 forfelting the discount $($expressed as a percentage to two decimal places$).$

$(5$ marks$)$

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.

$(5$ marks$)$

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.

$1\mathrm{.}3$

REQUIRED

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

$1\mathrm{.}3\mathrm{.}1$ Firstin$-$first$-$out

$(5$ marks$)$

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

$(5$ marks$)$ INFORMATION

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

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

FORMLA BHEET