Question: Management accounting please answer the question below fully 2.1 A company manufactures a product from a raw material, which is purchased at NS 54 per

 Management accounting please answer the question below fully 2.1 A company

Management accounting please answer the question below fully

2.1 A company manufactures a product from a raw material, which is purchased at NS 54 per kg. It incurs a handling cost of N$ 350 plus freight of N$ 400 per order. The incremental carrying cost of inventory of raw material is N$ 0.50 per kg per month. In addition, the cost of working capital finance on the investment in inventory of raw material is N$ 8 per kg per annum. The annual production of the product is 94,500 units and 2 units are obtained from one kg of raw material REQUIRED 2.1.1 Calculate the economic order quantity of raw materials 2.1.2 Advice, how frequently should orders for procurement be placed. 2.13 basis, what percentage of discount in the price of raw materials should MARKS If the company proposes to ranlze placement of orders on quarterly be negotiated? 2.2 A large consignment of materials of various types of makes was purchased for NS 40,000. Later on, these were sorted into the folowing categories: Price per unit NS 4 6 000 4 000 7 000 NS 2 REQUIRED 2.2 TOTAL MARKS FOR QUESTION 2 MARKS culate the purchase price for each of the materials presuming 8 that of in each case is the same 25 Page 11 of 14

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