QUESTION 1 (25 marks) This question consists of two separate parts, both of which must be answered. PART 1.1 {15} Maphitha Limited produces a single type of a product. The company uses an actual costing system. The following information has been taken from the company's production and sales records for the month of April 2021: Sales unlts 4000 units Finished goods: Balance as at 01 April 2021 1000 units Balance as at 30 April 2021 2 000 units Raw material: Balance as at 01 April 2021 500 kg @ R46,50 per kg Bought during the month 1 500 kg @ R4100 per kg Balance as at 30 April 2021 300 kg @? per kg Work-inrocess: R Balance as at 01 April 2021 4 800 Balance as at 30April 2021 2 750 Conversion costs: R Direct labour costs 84 000 Manufacturing overhead Incurred 59 300 Additional information: . The nished goods are carried at the average unit production cost for the month. - Raw material is valued according to the FIFO method of inventory valuation. REQUIRED: Calculate the following for April 2021: PART 1.2 {1D} Hluhluwe Limited uses the economic order quantity formula (E00) to establish its optimal reorder quantity for its single raw material. The following data relate to the inventory costs: Purchase price: R15 per item Ordering costs: R5 per order Storage costs: 10% of the purchase price plus R020 per unit per annum Annual demand: 3 825 units REQUIRED: 1.2.4 What assumptions underlie the E00 model? (3)