Introduction to Cost and Management Accounting - Perpetual Inventory System - Accounting Assignment Help

Assignment Task :

Question 1 35 marks
Lorch Limited is a small business that produces bottles in the centre of JHB. The company makes use of the perpetual inventory system. Lorch has provided you with the below information:

Additional information:

• The company had 80 units at R19.90 each and 93 units at R20.10 each on hand as at 1 September 2019.

Require:
Lorch has asked you to assist their company by calculating the value of the closing inventory on 30 September 2019 if the following methods are used:

•  First-in-first-out (FIFO)
• Weighted average cost

Question 2 
You have been provided with the below data to complete the pay slip for Boston City Campus’s cleaner (Thabisa Billy):

• Thabisa is a 25 year old who earns R35 normal rate per hour and has worked a total of 185 hours during March, of which 25 hours was for overtime.
• The overtime rate paid is 1.5 times the normal rate.
• Thabisa’s monthly contributions are as follow:
•  R500 to the pension fund.
• 1% of the normal wage to the UIF
• R15 to group life insurance
• The PAYE is at R nill (zero)

Question 3 
Disney Park Limited currently purchased an item in lots of 1 380 units. Disney Park Limited’s annual usage of this item is 7 000 units. Ordering costs are R230 per order,
carrying costs are R20 per year.
 

Required:
3.1 Use the above information to calculate the EOQ 5 marks
3.2 Calculate the annual cost savings if BL changes from an order size of 1 380 units to the EOQ. 19 marks NB: Show all your workings to get maximum marks
 

Question 4 
4.1 Use the below information to calculate net profit for ABC Limited for the yearmended 31 December 2019. 10 marks

Information:

• ABC Limited has the sales amount of R785 000
• Cost of sales R580 000
• Rent for the period amounted R12 000
•  Interest on fixed deposit of R18 000
• Operating expenses included the following:
• Insurance R10 000
• Wages and salaries R91 000
• Telephone R5 000
• Advertising R3 000
•  Interest expense R55 000

4.2 Study the extract from the statement of comprehensive income of ABC Limited for the year ended 2018 and 2019 financial years and answer the questions that follow:

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