SCHOOL OF BUSINESS, ECONOMICS AND MANAGEMENT

2020 ACADEMIC YEAR SECOND SEMESTER

COURSE TITLE: COST AND MANAGENT ACCOUNTING

COURSE CODE: AFIN 210
LECTURER: MRS. PHALES M. MWANZA
EMAIL: PHALESMWANZA@YAHOO.COM
MODE OF STUDY: FULL TIME
YEAR: 2020
NAME: THEMBA MANDA
STUDENT NUMBER: AFIN 19116559
EMAI: MANDAGEORGE871@GMAIL.COM
ASSIGNMENT ONE
DUE DATE: 24/09/2020
QUESTION 1
1. B 18. C
2. A
3. B
4. E
5. D
6. D
7. A
8. D
9. B
10. C
11. E
12. A
13. E
14. A
15. A
16. D
17. D
QUESTION 2

BLUE RED GREEN

125649.25 152316.45 159326.15
A .249653.10 B.124826.55 249653.1
C .375302.35 D. 277143 E. 408979.25
4952 HRS F. 7500.487 HRS G.6332.91HRS
H. 75.78 36.95 I. 64.58
J. 6.943 HRS 7.069 HRS
-65135.21 K. -47592.72
QUESTION 3
a) Where Q= is the no. of beers
D= total beers required
H= carrying cost per unit per year
S= ordering cost per year

Q= √ (2*D*S)/H
Q= √ ( 2*10000*50)/3
Q= 577.3502692 BEERS

b) Annual no. of orders= total demand / beer per order

= 10000/577.3502692
= 17.32050808

c) Total annual ordering cost= cost per order* number of orders

= 50 * 17.32050808
=866.025404
= k866.03

d) Total annual carrying cost= handling cost per unit* total unit
= 3* 10000
= k30 000
e)
No discount 5% discount
Purchase f) g) 180000 171000
Freight h) i) 20000 20000
Ordering j) k) 900 300
cost
(Carrying l) m) 30000 30000
cost
Gross n) o) 230900 221300
Finance cost p) q) 20781 19917
@9%of
gross
Total 251681 241217

So, saving of k10464 will be if 5% discount is availed

No. of order= 10000/ 1824= 6 orders
Ordering cost = 6*50 = 300

f)
redorder point at the EOQ level = daily usuage* lead time
= (10000/365) *9
= 247

G)
Purchase 180000
Freight 20000
Ordering cost 7*50 350
Carring cost 30000
Gross 230350
Finance cost 20731.5
@9% of
gross
Total 251081.5

There be saving of k 600

QUESTION 4

I. Encourages rewards and recognizes exceptional performance

II. Increases efficiency of the company (by reducing idle time expense)
III. Promote or encourage specific group of people during a defined period of time
IV. Particularly used I business management to motivate employees and in sales
to attract and retain customers.
V. Increasing loyalty and morale among employees
VI. Strengthened work relationships

(B) Employee basic premium total

1 (A) 38*22=836+ 3*4.4= 13.2 = 849.2
2 (A) 38*22=836+ 6*4.4= 264 = 862.4
3 (B) 38*18=684+ 2*3.6= 7.2 = 691.2
4 (B) 38*18=684 = 684
5 (B) 38*18=684 =684
6 (A) 38*22=836+ 7*4.4= 30.8 =866.8

(C) Grade A basic hourly rate 22.00

Piece work enhancement 6%
Piece work enhancement rate 1.32
Grade A basic hourly rate 22.00
Hourly piece work rate 23.32
Minutes per hour 60
Time allowance per hour 20 3
Standard piece work rate 7.77
d)
employee Normal unts standard piece Gross pay
produced rate
1 170 7.77 1321.47
2 170 7.77 1321.47
3 150 7.77 1166.00
4 150 7.77 1166.00
5 150 7.77 1166.00
6 180 7.77 1399.20