Use the information given below to determine the number of orders that should be placed for the year, based on the economic order quantity. Information Abby Traders sells a product which has a steady monthly demand of 12 000 units. The product is purchased from a supplier at R50 per unit. The ordering cost is R6 per order. The holding cost is 5.4% of the unit purchase price. 2. Use the information provided below to calculate the value of closing inventory as at 31 March 2024, if the weighted average cost method is used to value inventories. Express the weighted average cost per unit in rands and cents. Units Cost price per unit Inventory on 01 March 5000 R10 Purchased on 10 March 15000 R11 Returned to supplier (see 10 March) 2000 ? Purchased on 25 March 7000 R12 Sales for March 22000 INFORMATION The following information was extracted from the records of Cargo Stores for March 2024 3. Study the information given below and advise whether Steffi Stores should use its overdraft facility (interest rate 18% p.a.) to settle the debt within 15 days. Support your answer with relevant calculations. Information Abby Wholesalers credit terms to Steffi Stores are 30 days but the creditor is prepared to allow a rebate of 2.5% if Steffi Stores pays the account within 15 days. 4. Use the information provided below to determine the required number of units that should be produced during January 2025. Moss Manufacturers has the following sales forecasts for Product A for the first two months of 2025: January 30 000 units February 40 000 units Moss Manufacturers maintains an inventory, at the end of each month, equal to 30% of the budgeted sales of the following month. 5. Prepare the Cost of sales budget for 2025 from the information provided below. Milly Retailers expects to have an inventory of 30 000 units (at R13 each) of Product B on 01 January 2025. An additional 200 000 units are expected to be purchased at R15 each during 2025. An inventory of 50 000 units is expected on 31 December 2025. Inventories are sold on a first-in-first-out basis.
- Use the information given below to determine the number of orders that should be placed for the year, based on the economic order quantity.
Information
Abby Traders sells a product which has a steady monthly demand of 12 000 units. The product is purchased from a supplier at R50 per unit. The ordering cost is R6 per order. The holding cost is 5.4% of the unit purchase price.
2. Use the information provided below to calculate the value of closing inventory as at 31 March 2024, if the weighted average cost method is used to value inventories. Express the weighted average cost per unit in rands and cents.
| Units | Cost price per unit | |
| Inventory on 01 March | 5000 | R10 |
| Purchased on 10 March | 15000 | R11 |
| Returned to supplier (see 10 March) | 2000 | ? |
| Purchased on 25 March | 7000 | R12 |
| Sales for March | 22000 |
INFORMATION
The following information was extracted from the records of Cargo Stores for March 2024
3. Study the information given below and advise whether Steffi Stores should use its overdraft facility (interest rate 18% p.a.) to settle the debt within 15 days. Support your answer with relevant calculations.
Information
Abby Wholesalers credit terms to Steffi Stores are 30 days but the creditor is prepared to allow a rebate of 2.5% if Steffi Stores pays the account within 15 days.
4. Use the information provided below to determine the required number of units that should be produced during January 2025.
Moss Manufacturers has the following sales forecasts for Product A for the first two months of 2025:
- January 30 000 units
- February 40 000 units
Moss Manufacturers maintains an inventory, at the end of each month, equal to 30% of the budgeted sales of the following month.
5. Prepare the Cost of sales budget for 2025 from the information provided below.
Milly Retailers expects to have an inventory of 30 000 units (at R13 each) of Product B on 01 January 2025. An additional 200 000 units are expected to be purchased at R15 each during 2025. An inventory of 50 000 units is expected on 31 December 2025. Inventories are sold on a first-in-first-out basis.
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