CODeL ASSIGNMENT COVER
2022 ACADEMIC YEAR
Student Name
Hikurupa Puriza
Student number
220078785
Email Address
htpuriza@gmail.com
Cell/Tel no
0817738211
CODeL Centre
Windhoek Centre
Course/Module Name
Management Accounting 1A
Assignment no
(e.g. 1, 2 or 3, etc.).
1
Course/Module
Code
AAM 3691
Question 1
1.1
Cost
Direct
Indirect
Period
Variable Fixed
X
Salaries
Factory workers
Factory management
Accounting
Directors
Depreciation
Factory equipment
Office equipment
Buildings
Purchases from creditors
Raw material
Water and electricity
Factory
Store man
Office
Other
Cleaners (office) (fixed rate as per
contract)
Entertainment (amount is spent every
year)
External audit fees as per contract
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Question 2
2.1
FIFO
Quarter
Purchased
Unit
Unit
Total
s
cost
cost
N$
N$
Units
Issued
Unit
cost
N$
Total
cost
N$
1
300
30
9,000
300
29
8,700
2
400
35
14,000
200
100
29
30
5,800
3,000
Units
500
200
300
500
200
400
Balance
Unit
Total
cost
cost
N$
N$
29
14,500
29
5,800
30
9,000
14,800
30
6,000
35
14,000
3
400
36
14,400
4
400
37
11,100
300
200
100
300
300
30
35
8,800
6,000
3,500
9,500
600
300
400
700
35
10,500
400
300
700
35
36
36
37
20,000
10,500
14,400
24,900
14,400
11,100
25,500
Cost of goods sold = Opening inventory + Purchases – Closing inventory
= N$ 14,500 + N$ 48,500 – N$ 25,500
= N$ 37,500
2.2
LIFO
Quarter
Purchased
Unit
Unit
Total
s
cost
cost
N$
N$
Units
Issued
Unit
cost
N$
Total
cost
N$
1
300
30
9,000
300
30
9,000
2
400
35
14,000
200
35
10,500
3
400
36
14,400
300
36
10,800
4
400
37
11,100
300
37
11,100
Units
500
500
500
100
600
500
100
100
700
500
100
100
700
Cost of goods sold = Opening inventory + Purchases – Closing inventory
= N$ 14,500 + N$ 48,500 – N$ 21,600
= N$ 41,400
Balance
Unit
Total
cost
cost
N$
N$
29
14,500
29
14,500
29
35
29
35
36
29
35
36
14,500
3,500
18,000
14,500
3,500
3,600
21,600
14,500
3,500
3,600
21,600
2.3
Gross profit for the year bases on FIFO COGS
20
= 𝑁$37,500 ∗ 120
= N$ 6,250
2.4
Re-order level = Maximum usage * Maximum lead time
= 300*2
= 600 units
2.5
Minimum inventory level = Re-order stock level – (Average usage * Average lead time)
= 600 – (250*1.5)
= 225 units
2.6
Issue confirmation
Stock requisition
Stock return
Over the counter
Question 3
3.1
Total Number of works worked
50 hours
Overtime Hours( 50-45)
5 hours
Remuneration per hour
N$ 30
S. Slinger pay slip
NAMIBIA BODY WORKS
Employee name: S.Slinger
Designation: Panel beater
Period
: May 2021
Earnings
Normal wage (45*N$30)
Overtime (5*N$45)
Deductions
N$1,350 Social security
N$225 Pension fund
Income tax
N$12.15
N$108.00
N$315.00
Total earnings
N$1,575 Total deductions
N$435.15
NET Wage
3.2
Remuneration for Jacob for the day using the differential piecework system
Standard panels per day = 9 hours * 3 panels per hours
= 27 panels
Hours worked = (32 units * 20 minutes)/60 minutes
= 10.67 hours
𝐻𝑊∗𝑊𝑅𝐻
Calculation of standard time rate per unit = 𝑆𝑇𝐷 𝑢𝑛𝑖𝑡𝑠
N$1,139.85
=
10.67∗𝑁$36
27
= N$14.23 per unit
Bonus wage = units produced * rate per unit * standard percentage
= 32 units * N$14.23 * 120%
= N$546.43
Basic wage = HW * WRH
= 10.67 hours * N$36
= N$384.12
Remuneration = N$546.43 + N$384.12
= N$930.55
3.3
F. Frans hourly recovery tariff per hour
Annual salary of F. Frans
Annual salary of F. Frans (N$10,000*N$12)
Add : Bonus
Less : Pension fund
Annual salary of F. Frans
N$120,000
N$9,000
N$129,000
N$9000
N$120,000
Number of working days for the year
Total number of days
Less: Paid vacation leave
: Public holidays
: Saturday's & Sunday's for the year ( 52 X 2 - 9)
Number of working days
365
28
12
95
230
Total number of working hours per year = number of working days for the year * working hours
per day
= 230 days * 9 hours
= 2070 hours
Hourly tariff rate per hour = Annual salary / Number of working hours per year
= N$120,000/2070 hours
= N$57.97
Question 4
4.1
Time taken to complete the first batch - 12 hours
The cumulative time to manufacture the 4th batch - 27 hours
Let X be the learning curve ratio
Therefore, equation will be: - (Using Doubling approach)
(
4(12∗𝑥
100
48𝑥 2
10,000
𝑥
) (100) = 27
=
27
1
48𝑥 2 = 270,000
𝑥 2 = 5,625
𝑥 = 75
Learning curve ratio is = 75%
4.2
Time is taken to complete the first batch - 12 hours
The cumulative time to manufacture is the 4th - 27 hours
27-12=15
15 /3 =5 hours
5hours x 4 batches = 20 hours
The time taken to complete the 8th bath is 27 + 20 = 47 hours.
4.3
8 batches x 500 ml = 4000 ml.
Labor cost for 4000 ml :- 47hours x N$ 7.5 = N$352.5
Labor cost for special order 150 ml:352.5/4000 = 0.088125.
0.088125 x150ml = N$ 13.217