FACULTY/COLLEGE College of Business and Economics

SCHOOL School of Accounting

DEPARTMENT Commercial Accounting
CAMPUS(ES) SWC
MODULE NAME Cost & Financial Management 3A
MODULE CODE CFM33A3
SEMESTER First
ASSESSMENT OPPORTUNITY First Assessment Opportunity

ASSESSMENT DATE 14 March 2022 SESSION 10:30 – 12:00

ASSESSOR(S) M Janse van Rensburg, L Joubert, K Motaung
MODERATOR(S) C Koto
DURATION 1.5 hours (90 min) TOTAL MARKS 33

NUMBER OF PAGES OF QUESTION PAPER (Including cover page) 10

1
INFORMATION / INSTRUCTIONS:
________________________________________________________________________
NUMBER OF QUESTIONS: 7
NUMBER OF MARKS IN TOTAL: 33

Assessment date: 14 March at 10:30 online.

AO1 will be available in the 2022 Assessments folder at 10:30.
You have 1.5 hours to complete the assessment – from 10H30 – 12H00.
You have one attempt.
Save after each question.
Questions are given one at a time, and you are not allowed to go back once you have gone to the
next question. If you skip a question, you cannot return to it.
Late submissions will be penalised by way of a time-weighted calculation.

PLEASE TYPE YOUR ANSWER EXACTLY AS INDICATED IN THE NOTE OF EACH

QUESTION. YOU WILL LOSE MARKS IF THE ANSWER IS NOT INDICATED AS REQUIRED.

EVERY QUESTION SHOULD BE TREATED AS AN INDIVIDUAL QUESTION – NONE OF THE

QUESTIONS ARE LINKED. TREAT EACH QUESTION IN ISOLATION.
Please keep a working-paper and a pen ready for your calculations.

You should contact cfm3@uj.ac.za immediately should you experience any network problems
or CFM related issues during the test. This will allow us to clear your attempt and provide you with
a second attempt.
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Helpdesk on 073 505 8273.
_______________________________________________________________________

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offence during an assessment as per UJ Academic Regulations and Assessment Policy.
I understand that persons who are not registered for a relevant module and are present
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face disciplinary procedures or legal action.
I have NOT:
• Committed academic misconduct;
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except for explicitly approved sources as permitted by the Assessor.

I agree by clicking begin

_______________________________________________________________________
2
QUESTION 1 CVP (4)

Shut The Front Door is a small business that makes curtains. Shut The Front Door sells their
products to a large fabric factory store. The curtains are displayed in a corner of the factory shop.
Two types of curtains are sold, extra length curtains for R300 and standard curtains for R260
each. The business also rents a room from the factory shop to make the curtains. Fixed overheads
consist of rent, salaries and electricity that the business pays to the factory shop. All these fixed
manufacturing overheads amounts to a total of R60 000.00 per month. Customers normally buy
three extra length curtains before they buy two standard curtains.

Additional information is as follow:

Extra Length Standard

Material (cost per m is R65.00) R160 R140

Other variable manufacturing costs R60.00 R49.00

Variable marketing costs R22.00 R22.00

Fixed marketing costs (total = R22 000.00)

Required:

Calculate the total weighted average contribution of Shut The Front Door for the period.

Note: Round your answer to the nearest full Rand, no decimals. No spaces.

Remember “R” for Rand; e.g. R1340

3
QUESTION 2 CVP (3)

Shut The Front Door is a small business that makes curtains. Shut The Front Door sells their
products to a large fabric factory store. The curtains are displayed in a corner of the factory shop.
Two types of curtains are sold. The contribution per unit is R60 for extra length curtains and R40
for standard curtains. The business also rents a room from the factory shop to make the curtains.
Fixed overheads consist of rent, salaries and electricity that the business pays to the factory shop.
All these fixed manufacturing overheads amounts to a total of R55 000.00 per month. Customers
normally buy two extra length curtains before they buy one standard curtain.

Additional information is as follow:

Extra Length Standard

Production variable cost per unit R30.00 R15.00

Variable marketing costs R24.00 R24.00

Fixed marketing costs (total = R22 000.00)

Required:

Calculate the break-even batches of Shut The Front Door for the period.

Note: Round your answer to the nearest two decimals. No spaces, e.g., 1.12

Use a period (full stop) and not a comma!

4
QUESTION 3 CVP (6)

Shut The Front Door is a small business that makes curtains. Shut The Front Door sells their
products to a large fabric factory store. The curtains are displayed in a corner of the factory shop.
Two types of curtains are sold, extra length curtains and standard curtains. The contribution is
R64.00 per extra length curtain and R70.00 per standard curtain. A family friend is a management
accounting student. He calculated the break-even for the sales mix to be 170. Customers normally
buy one extra length curtain before they buy two standard curtains.

Additional information is as follow:

Extra Length Standard

Variable production cost per unit R122.00 R135.00

Variable marketing costs R24.50 R24.50

Required:

Calculate the total break-even units of extra length curtains [A], standard curtains [B] and total for
the products [C] and the break-even value for the extra length curtains [D], standard curtains [F]
and total for the products [G] for the period.

Note: Round units to the nearest full units, no decimals. No spaces e.g. 1340

Note: Round value to the nearest full Rand, no decimals. No spaces.

Remember “R” for Rand; e.g. R1340

5
QUESTION 4 CVP (5)

Shut The Front Door is a small business that makes curtains. Shut The Front Door sells their
products to a large fabric factory store. The curtains are displayed in a corner of the factory shop.
Two types of curtains are sold, extra length curtains and standard curtains. The business requires
a total weighted average contribution of R40 000 for extra length curtains and R30 000 for
standard curtains to break-even. A family friend is a management accounting student, and he
provided the business with some advice from time-to-time. The weighted average contribution is
R220 per extra length curtain and R90 per standard curtain. Customers normally buy four extra
length curtains before they buy three standard curtains.

Required:

Calculate the total number of extra length curtains [A], standard curtains [B] and total products [C]
that Shut The Front Door should sell for the period.

Note: Round to the nearest two decimals. No spaces, e.g., 1340.12

Use a period (full stop) and not a comma!

6
QUESTION 5 Ops Budgets (2)

Joseph recently lost his job because of the pandemic. He walked around the neighbourhood and
saw that most of the occupants’ security gates and braai’s needed replacement. He sends his
son to enquire how many people would purchase these products from him. His son collected the
information and told his dad that he needs to produce 14 braai’s and 18 security gates. Joseph
realised that he should also enquire at other neighbourhoods after these products were sold. He
decided to produce 3 additional braai’s and 5 additional security gates to ensure that he has
inventory to sell as soon as the sales in his own neighbourhood were made.

Required:

Calculate the sales units for braai’s [A] and security gates [B].

Note: Round to the nearest full unit, no decimals. No spaces.

7
QUESTION 6 Ops Budgets (9)

Joseph recently lost his job because of the pandemic. He walked around the neighbourhood and
saw that most of the occupants’ security gates and braai’s needed replacement. He sends his
son to enquire how many people would purchase these products from him. His son collected the
information and told his dad that he needs to produce 15 braai’s and 21 security gates. However,
Joseph anticipates that not all occupants will purchase these products as they indicated and as a
result he will sell 10 braai’s and 17 security gates.

Joseph produced portable stainless-steel braai’s with two solid rubber wheels. Each braai offers
a two-fire bin combination with heavy-duty barbeque grids. Joseph needs 4 stainless steel sheets
at R1 078 each and two rubber wheels at R202 per braai.

The security gates are welded using top quality steel (including reinforcing rods, droppers and flat
bars). The gate has a lock that adheres to the specifications of all the leading security firms. The
lock costs R540 and steel costs R67 per reinforcing rod, R20 per dropper and R100 per flat bar.
Joseph needs four reinforcing rods, 12 droppers and two flat bars.

Required:

Joseph needs to spend [A] to purchase the stainless steel sheets, [B] to purchase the rubber
wheels, [C] to purchase the reinforcing rods and [D] to purchase the droppers. What is the total
value of purchases [F] of these four items? Ignore the lock and the flat bars of the security
gate.

Note: Round to the nearest full Rand, no decimals. No spaces.

Remember “R” for Rand; e.g. R1340

8
QUESTION 7 Ops Budget (4)

Joseph recently lost his job because of the pandemic. He walked around the neighbourhood and
saw that most of the occupants’ security gates and braai’s needed replacement.

Joseph’s wife assisted him with the cost calculations. They decided on a mark-up of 25% on
variable manufacturing cost. A friend queried the fact that they ignore fixed manufacturing cost.
Joseph indicated that their home is paid off, and he does not want his sales price to be too high
to obtain a greater market share. The following manufacturing cost information is available:

Braai Security Gate

Direct labour (R50 per hour) 360 minutes 240 minutes

Direct material R1,220 R980

Variable manufacturing overheads R25 per labour hour R25 per labour hour

Required:

Calculate the sales price for braai’s [A] and security gates [B].

Note: Round to the nearest two decimals. No spaces, e.g., R1.12

Remember “R” for Rand.

Use a period (full stop) and not a comma!

Paper Total [33]