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QUESIIUN T

$1\mathrm{.}1$

$(20$ Marks$)$

REQUIRED

Use the information provided below to prepare the Materials Purchases Budget of Lunar Limited for $2025.$

INFORMATION

$(5$ marks$)$

The required production of Lunar Limited for $2025$ for the only product that it manufectires is $5000$ units. Four kilograms of direct materials are required for each unit produced. The dired materals inventories on $01$ January $2025$ and $31$ December $2025$ are expected to be $3000$ kilogars and $5000$ kilograms respectively. The expected purchase price is R$6$ per kilogram.

$1\mathrm{.}2$

REQUIRED

Study the information given below and determine the cost $($as a percentage, expressed to two decimal places$)$ to Tissot Traders of not accepting the discount.

INFORMATION

$(5$maris$)$

Tissot Traders purchased inventory on credit from UK$.$ Manufacturers. The credit tems offered by the manufacturer were $\frac{3}{12}$ net $60$ days.