FACULTY OF COMMERCE,

MANAGEMENT & LAW

DISTANCE MODE ASSIGNMENT
LETTER

Old Curriculum
Academic Year 2024
Semester (1)
[AAM3691 Management Accounting 1A]

A MUST, TO READ THE ENTIRE

DOCUMENT

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ACCOUNTING, ECONOMIC & MANAGEMENT

SCIENCES

ASSIGNMENT ADMINISTRATION
CORE CALENDAR FOR DISTANCE AND ONLINE COURSES – 2024
SEMESTER 1
MONTH DATES ACTIVITIES Schools

February Creation of Moodle courses for Distance and Online mode

5 February Orientation

12 February Semester 1 Lectures Commences

March 25-28 March 2023 Compulsory Virtual Vacation School All Schools

April FIRST ASSESSMENT: 1st SEMESTER MODULES

2 April Due date: 01st Assessment of 01 Semester Modules Only School of Accounting, School of Business
3-5 April Grace Period for assessment submission/ completion Management, Governance & Economics
School of Law

MAKE-UP/ COMPENSATORY ASSESSMENT 1: 1st SEMESTER MODULES

April
17 April Make-up assessment due date: 1st Assessment
– Only applicable if you score 1-39% in Assignment 1.
Take note that a new assessment (test or assignment) is
to be submitted.
School of Accounting, School of Business
Management, Governance & Economics
School of Law

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SECOND ASSESSMENT: 1st SEMESTER MODULES
19 April Due date: 02nd Assessment of 01 Semester Modules Only School of Accounting, School of Business
20-22 April Grace Period for assessment submission/ completion Management, Governance & Economics
School of Law
April
MAKE-UP/ COMPENSATORY ASSESSMENT 2: 1st SEMESTER MODULES

7 May Make-up assessment due date: 2nd Assessment School of Accounting, School of Business
– Only applicable if you score 1-39% in Assignment 2. Management, Governance & Economics
Take note that a new assessment (test or assignment) is School of Law
to be submitted.
Year Modules
30 April Due date: Year modules Assignment 1 School of Accounting, School of Business
1-3 May Management, Governance & Economics
Grace Period: Year module Assignment 1
School of Law
May 17 May Make-up/ Compensatory assessment due date: 1st
Assessment Year Modules
– Only applicable if you score 1-39% in Assignment 1.
Take note that a new assessment (test or assignment) is
to be submitted.
July 29 July Due date: Year modules Assignment 2 School of Accounting, School of Business
30 July – 1 August Grace Period: Year module Assignment 2 Management, Governance & Economics
School of Law
August 19 August Make-up/ Compensatory assessment due date: 2nd
Assessment Year Modules
– Only applicable if you score 1-39% in Assignment 2.
Take note that a new assessment (test or assignment) is
to be submitted.

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2 September Due date: Year modules Assignment 3 School of Accounting, School of Business
Management, Governance & Economics
3-5 September Grace Period: Year module Assignment 3 School of Law
September
20 September Make-up/ Compensatory assessment due date: 3rd
Assessment Year Modules
– Only applicable if you score 1-39% in Assignment 3.
Take note that a new assessment (test or assignment) is
to be submitted.
15 May 2024 Lectures end for First Semester

21 May 2024 Release of CA Marks All Schools

22 May 2024 Semester 1 First opportunity Examinations
11 June 2024 Semester 1 Second opportunity Examinations

For modules that will have online tests, all information shall be communicated well in advance. Kindly take note that some modules might
have 3 to 4 assessments. E.g.
2 assignments and 1 to 2 online tests. All necessary information will be shared timely.
Good luck!

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2024 Distance Mode Assignments

[AAM3691 Management Accounting 1A ]
Dear Student,

Welcome to the University of Namibia. We are confident that your studies and hard work will be
rewarded with success. We kindly advise that you obtain all the relevant information and booklets
available for distance students from your Moodle platform (including the 2023 Student Information
Letter, Online Assignment Submission Guide and other documents). These documents will
provide guidance on how to approach your studies and will guide you through your study materials as
well as providing useful administrative information in submitting assignments.

1. Study materials
Your study guide is essentially your “teacher/lecturer”. However, in addition, you are required to visit
the library to consult prescribed books and recommended readings that are indicated in the study guide
as well as browse the Internet in general. You are also responsible to purchase any prescribed
textbooks required for your respective courses/modules. Furthermore, you are strongly advised to
follow the guidelines in the Online Assignment Submission Guide available on Moodle.

2. Collaborative Learning
Unam avails all your modules through Moodle, enabling you to interact with your fellow students online
through forum discussions and chats. You can use the same platform to engage with your lecturers and
tutors regarding academic support. Please take advantage of Moodle to avoid isolation and strengthen
your interaction with colleagues, ask for help, and share/receive resources to aid your learning process.
See below how to access forum discussions on Moodle:

Figure 1: Forums in courses

3. Submission of assignments
It is very important to complete and submit a clean, clear and well-argued assignment for marking. Make
sure that you have understood the questions in order to answer them correctly. It is your responsibility
to make sure that every page of the completed assignment is correctly numbered before submitting
your assignment.
As from 2017, ALL assignments are submitted through the Moodle Learning Management
System. This is an online platform where you will access all your modules and related information such
as course outlines, course notes and other learning materials that your lecturer/tutor may choose to
share with you. Moodle is accessible here: http://elearning.unam.edu.na. You should complete and
submit all assignments on or before the given due date in the assignment letter if you wish to obtain
your CA marks and qualify for examinations. UNAM always updates its assignment covers on an annual
and semester basis. Please ensure that you have used the latest assignment cover. The latest
assignment cover is availed on each course on Moodle.
A user guide is available on how to submit your assignment in each module on the Distance Education
Common Space and you can access it on the Online Support system. Pay close attention to the
following key points listed at the beginning of the guide on:

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3.1 How you would know when you have successfully submitted your
assignment: that is when the submission status shows “Submitted for grading”

Figure 2: Assignment submission status

MAKE SURE THE SYSTEM GIVES YOU A CONFIRMATION OF SUBMISSION by the

submission status shown as "Submitted for grading" when done. If that status is NOT
displayed when done, IT DOES NOT COUNT AS A SUBMISSION.

3.2 Errors to avoid when submitting your assignment (committing these errors may
result in you failing to submit your assignments and therefore potentially failing your
course)

a. You are submitting on the correct Module/Course

b. You have selected and uploaded the correct Assignment document from your
computer
c. You are submitting the correct Assignment number for the respective activity (i.e.
Assignment 1, 2, etc.)

3.3 How to check the assessment feedback when your assignment has been graded.

4. Due Dates
All assignment due dates for 2022 are published on second page of this assignment letter. With the
shift from manual to online assignment submission since 2017, due dates are automated and non-
negotiable. This means that you would be required to submit your assignments ON or BEFORE the
due date set on your assignment (before 11h55 PM). After the date has passed (i.e. 12h00AM of the
next day) the assignment submission will be disabled, and you would no longer be able to submit
your assignment. Please note that assignment submissions will be open long before the due dates.
Please note that your assignment due dates are on page 2 of this Tutorial Letter. Use this assignment
due dates to set up your calendar tool on your mobile phone or computer to set reminders for yourself
and manage your time. Another way to keep pace with due dates, is by regularly visiting your Timeline
of each of your courses on Moodle on the Course Overview. Also download the Moodle mobile app to
access Moodle on your mobile phone or tablet and have access to notifications about due dates at your
fingertips from Google Play Store for Android or Apple App Store for IOS.

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5. Submission of Assignments
Due to challenges with Internet connectivity and speed, large files may take too long to upload, which
is a big risk if you wait until the last minute to submit your assignments. You are therefore strongly
advised NOT to wait until the final hours of the due dates to submit your assignments to avoid
disappointments. You are also advised to ensure that you are in an area with good Internet connectivity
when submitting your assignments. Timely submission of all assignments on or before the given due
date is crucial for the timely grading and processing of your CA marks and determining admission to
exams.
Take note that assignments should never be submitted directly by email or hard copy to
individual tutors or any other staff members of the University of Namibia.

6. Medical and death are the only reasons accepted for the late submission of assignments.
Late submission of assignments will only be approved 7 days (including public holidays and
weekends) after the due date of an assignment. Valid documentary proof must be attached as part
of the assignment before any late submission will be considered. Late submission without valid
documentary proof attached to the assignment will be returned unmarked and may not be
resubmitted for marking. Travelling and attendance of workshops, job related activities and
conferences may not be used as an excuse for the late submission of assignments. All late
submission request must be forwarded to the Student support coordinator for approval.

7. Academic Support
One every Moodle course there is an embedded Academic Support section with materials to assist you
with your writing process (see Figure 3 below). Go through the videos in order to enhance your writing
process and submit better quality assignments.

Figure 3: Academic Support tutorials

8. Grace Period
A grace period refers to three (3) additional days added after your assignment due
date. The purpose of this grace period is to provide each student with time to verify
and or to make amendments to assignments already submitted. These changes may
include correcting errors like submitting a file to a wrong module or on a wrong
assignment; submitting a wrong file; losing internet connectivity, etc. An example
would be that a student attempting to submit an assignment and they lose internet
connection would still be able to try again the day after at a different place or when the
connection has been restored.

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9. Plagiarism Control
It has been observed that some students copy information from the Internet and paste
into their assignments without acknowledging the sources of the information. This is
called plagiarism. A copy of the Policy on Academic Integrity has been provided to you
on every course on Moodle. Please note that plagiarism which includes copying and
pasting information from the Internet would not be tolerated, shall result in your
assignments declared null and void and graded as a “0”. All assignments submitted
through Moodle would be checked for plagiarism using plagiarism detection software.
You are therefore strongly urged to acknowledge EVERY source that you use for your
assignment by using the appropriate citations and references following the referencing
style prescribed by your lecturers (APA Referencing guides are available freely
online). Find one here: http://www.uofa.edu/docs/apa-documentation.pdf

Any assignment found with high similarity scores or with evidence of clear attempts to
cheat such as submitting an assignment that is not your own would result in a zero (0)
grade.

10. Vacation schools

Attending vacation school is COMPULSORY and the vacation school timetable will be made
available through the UNAM Moodle

11. My UNAM Portal and Moodle

We recommend that you regularly (at least twice a week) access your “My UNAM
Portal” (http://my.unam.edu.na) for your registration status and information, and
Moodle (https://elearning.unam.edu.na ) for your learning and assessment
information.

Also visit the Distance Education Common Space on Moodle where you can find all
necessary information and user manuals related to your distance mode studies and
also engage with other students studying on distance mode. See additional
information under Section 11 below.

12. Online Support (Ticketing) System

An online support system is provided where you can report some of the issues that you may experience
regarding your studies. This system is easily accessible from the Moodle LMS system.

Figure 4: Online ticketing system

You can also make use of the Online Support (Ticketing System) for queries to be responded to by
the responsible person within 48 hours. We recommend you use this system for Help Topics or issues
listed on the system rather than email or telephone calls.

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13. Online information, Tutorials and Distance Education Common Space
Information and Tutorials are provided in each course on the Moodle Learning
Management System which you should first familiarise yourself once you first access
your courses.

Figure 5: Info-Tutorials on Moodle

Indicated in Figure 4 above, the Distance Student Orientation provides video tutorials on various
activities you would perform such as submitting your assignments, converting your documents into pdf
format, changing your email address, how to check your results when assignments have been graded
and so on.
Updates and information with regard to your studies and related events would be shared in the Distance
Education Common Space which you can access from any course as shown in screenshot below. All
students studying on distance mode are linked this the space where you can collaborate or discuss
general issues.

Figure 6: Distance Education Common Space

You will also find the Student Information Letter, your Vacation School Timetable and User Guides in
the Distance Education Common Space.

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14. Staff Contact Information
If you study conscientiously, your efforts will be rewarded. Should you need any assistance or
clarification on the module contents, you can reach the relevant staff members at the contact details as
given below:

Tutor:
For Module/Subject content related matters, TBA
Assignments marks and CA marks queries
Student Support Coordinator:
Assignment due dates, Availability of assignments, Ms. Anna-Marie Murere 0612063729 amurere@unam.na
Unmarked assignments, Vacation schools
Faculty officers: Ms Nelago 0612063987 onelago@unam.na
Admissions Ms T Nuuyoma 0612063609 tnuuyoma@unam.na
Registration Ms G Van Wyk 0612063084 gvanwyk@unam.na
Appeals Ms. A Nelumbu (SP) 063 220 2039 anelumbu@unam.na
Addition of Modules Ms. S Shapumba (HP) 064 502 6508 sshapumba@unam.na
Cancellations of Modules Mr. I Mundumbu (RP) 066 268 6078 imundumbu@unam.na
Graduation Ms. R Chata (KP) 066 262 6071 nchata@unam.na
Ms A Felix (PO) 065- 2323042 afelix@unam.na

Examination Officers: Desley Goses (WHK) 061-2064881 dgoses@unam.na

For Exam marks and exam timetable, exam Stephanie Nehoja (WHK) 061-2063715 snehoja@unam.na
related matters
All exam officers at respective
campuses assist students of those
campuses

eLearning Administrator: Mr Owen Lisulo 0612063381 olisulo@unam.na

Moodle related queries (technical problems), Mr Shaka Maikhudumu 0612063000 smaikhudumu@unam.na

linking of Modules, etc.
https://elearning.unam.edu.na/sup
Please create an online ticket for any assistance port/open.php

Computer Centre/ IT Helpdesk 061 2063014

Log In/Passwords To reset passwords & for itsupport@unam.na
Team 061 2063041
Logging onto Moodle and Portal

NOTE: For additional information consult the Prospectus and UNAM General Information and
Regulations Prospectus.

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Serious offence not tolerated at all
Note well: Plagiarism
Plagiarism is “the wrongful appropriation or purloining, and publication as one’s own, of the ideas, or the
expression of the ideas of another” (OED). All published and unpublished material, whether in manuscript, printed
or electronic form, is covered under this description.
The Proctors’ Disciplinary Regulations concerning conduct in examinations (see Part 19.4. and 19.5, p. 52) state
that ‘No candidate shall present for an examination as his or her own work any part of the substance of another
person’s work. In any written work (whether thesis, dissertation, essay, coursework, or written examination, or
assignment) passages quoted or closely paraphrased from another person’s work must be identified as quotations
or paraphrases, and the source of the quoted or paraphrased material must be clearly acknowledged.’ In all written
work students must be vigilant in citing the work they have referred to or quoted from (please see further Appendix
D). Examples of plagiarism and detailed advice as to how to avoid it are given on
http://www.admin.ox.ac.uk/edc/goodpractice/: you are strongly advised to consult this website.
It has been observed that some students merely download information from the Internet, copy verbatim from other
printed sources (including the Study Guide, employ other people to do their assignments for them, or plagiarise
each other’s assignments (either directly, that is, word-to-word, or through a re-arrangement of words or
paragraphs in order to deceive the tutor or marker).
These practices constitute very serious academic offences of academic dishonesty, alternatively, intellectual fraud,
which attract very serious and heavy penalties. Students must desist from such practices. Such students may score
very high marks but invariably perform very poorly in examinations. It is in the interest of such students to
endeavour to exercise their own intellectual faculties, do their own research, and personally do the set assignments.

No hardcopies are allowed, all assignment are to be uploaded through Moodle.

✓ Assignments should be submitted in PDF – only. Kindly save your assignments in PDF format
✓ Make sure that you submit one assignment as one file/document. Do not create and upload
several folders; do not zip the documents. Have 1 one document/file for 1 (ONE) entire
assignment.
✓ Assignments for modules with formulas can be handwritten, scanned in one document and
uploaded on Moodle accordingly.
✓ Make sure you submit a document that is readable and virus free.
✓ Make sure you upload the right file with the relevant assignment content.
✓ After submitting your assignment on Moodle do verify on the file you uploaded. Always try
to submit your assignment few days before the due date, this allows you to double-check
all the nitty-gritties.
NO LATE SUBMISSIONS WILL BE TOLERATED. NO LATE submission due to not adhering to the
above advises or guidance WILL BE ACCEPTED nor ENTERTAINED.

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2024 AAM3691 Assignment Questions

Assignment 1
Question 1 (25 marks)
Rocky Crest Enterprises (RCE) produces a single product that they sell for N$15.00 per unit.
The company has a capacity to produce 120 000 units per annum and is currently operating
at full production capacity.
The following costs relate to its operations per year:

Direct materials N$510 000

Direct labour N$370 000
Variable overheads N$140 000
Fixed overheads N$620 000

The company has seen an increase in demand and have estimated that they need to produce
additional 30 000 units per year to meet demand. To achieve this, the company is proposing
to change its labour shift working arrangements. A premium of 10% on the existing labour rate
will be paid to direct workers and hourly production output would be expected to increase by
5%. The quantity needed per unit of production in terms of direct materials would remain
unchanged, but a discount of 2% would be received on all direct materials if annual quantities
purchased increase by more than 20%. Fixed overheads would increase by N$70 000 per
year whilst variable overheads per unit of output would remain unchanged. The additional 30
000 units per year would not affect the selling price.

Marks
Required Sub-
Total
total
Classifying costs by element, prepare an annual profit statement of
1.1 5 5
the current production level (i.e. at full capacity)
Classifying costs by element, prepare an annual profit statement for
the additional 30 000 units. Incorporate the changes (+ or -) to
1.2 (1.1) above as a result of producing and selling the 30 000 additional 10 15
units by employing the revised shift working (show clear workings
for each changed calculation).
Classifying costs by element, prepare an annual profit statement of
1.3 the new increased capacity (i.e. 150 000 units) after incorporating 5 20
all the changes as noted above.
Using a graph show the total expenditure on direct materials for
1.4 5 25
output ranging from 0 to 150 000 units per annum.
Total 25

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Question 2 (14 marks)

Nkurenkuru Plumbing CC uses both plastic and steel pipes in when building water and sewage
systems in residential homes as well commercial buildings. The business orders 3 000 plastic
pipes from its main supplier Eenhana Engineering Limited. Nkurenkuru Plumbing CC
periodically orders a quantity that reduces the holding and carrying costs to a minimum. The
pipes cost N$150 per unit (having a length of 10 metres) when bought in quantities agreed
with the main supplier. The carrying cost is estimated to be 2% of unit cost of a pipe while it
costs N$180 to order and process the delivery. It takes a maximum of 45 days to receive the
pipes from the date the order is made and the maximum pipes used is a monthly average
based on the annual requirement. Assume that there are 365 days in a year and 30 days in a
month.

MARKS
REQUIRED: Sub-
Total
total
How many pipes does Nkurenkuru plumbing CC needs to 6
2.1 6
satisfy the its customer requirement annually?
What is the frequency of making order in days based on the 2
2.2 8
EOQ?
2.3 Based on the above information calculate the re-order level. 3 11
2.4 What are 3 differences between a bin card and a stock ledger? 3 14
Total 14

Question 3 (15 marks)

In 2022, following the post-pandemic closure of her employer’s business which was a family-
owned freight company in Swakopmund, Angela decided to put her skill in logistics and love
for cooking to work and open a small business in the form of a food truck.
Fork’ n Pork is operated from an old school bus parked near the beach and offers customers
breath-taking views as they enjoy their delights.
Angela does all the admin and logistics for the business, for this she pays herself a monthly
salary of N$ 16 000. She employs 3 additional workers a cook and two assistants who
assemble and serve the meals. These employees are paid using a system that combines the
meals served with a minimum living wage of N$ 1 000 per week.
The units of output recorded for the week ended 13 May 2023:

Monday Tuesday Wednesday Thursday Friday Saturday

Number of meals 300 295 250 150 280 140
Number of customers 120 125 110 95 130 80

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Additionally, the cook is paid N$1.20 per meal and the servers split the number of customers
in half and get paid at a rate of N$1.80 each.
The pension fund contribution is 5% of basic pay for each employee and the employer
matches the employee’s contribution.
Assume each month is made up of four weeks.

MARKS
REQUIRED: Sub- Total
total
Name the two types of remuneration systems combined in the 2 2
3.1 scenario above and explain why the company might opt for such a
system.
Calculate the taxable income for each of the employees for the 12 14
3.2
week ended 13 May 2023.
Distinguish the labor costs at Fork’ n Pork into direct and indirect 1 1
3.3
components.
Total 15

Question 4 (28 marks)

Omakunde tannery operates a factory whose expected production overhead costs at three
different levels of activity in a period are as follows:

Output (Units)
16 000 20 000 24 000
N$ N$ N$
Variable costs 14 000 17 500 21 000
Semi variable costs 12 200 13 000 13 800
Fixed costs 31 000 31 000 31 000

The total production overhead costs of the factory for a period can be calculated using a cost
function equation as follows:
y = a + bx
where:
y is the total production overhead cost (N$)
a is the total fixed production overhead cost (N$)
b is the variable production overhead cost (N$ per unit of output)
x is the number of units of output.

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Marks
Required Sub-
Total
total
4.1 Using the data above, calculate the values of a and b. 10 10
Estimate the total production overhead costs for the factory in a period
4.2 3 13
if 18 000 units are manufactured.
Calculate the predetermined production overhead absorption rate, per
4.3 unit of output for the factory, based on planned production of 20 000 3 16
units in a period.
Using the absorption rate established in (2.3) above, calculate the
4.4 over/under absorbed overhead if actual output is 21 500 units and 6 22
costs are as expected.
Contrast the way in which production overhead costs are attributed to
4.5 products using activity-based costing (ABC) with the more traditional 6 28
full absorption costing approach.
Total 28

Total Assignment 1: 82 marks

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Assignment 2
Question 1 (18 marks)
ABC company produces and sells a range of products. Activity-based costing is applied to the
control and apportionment of production overhead costs.
Information regarding production activities and associated budgeted costs for the next year is
as follows:

Activity Cost driver Cost driver volume Overhead expenditure

Materials handling Weight of materials 240 000 kg N$76 800
Machining Items handled 112 000 items N$197 120
Assembly Direct labour hours 90 000 hours N$94 500
Product testing Units tested 74 000 units N$153 920

One of the products that the company produces, Product Axe, has the following estimates
for the year:

Weight of materials 7 800 kg

Items handled 3 100 items
Direct labour hours 2 700 hours
Units tested 4 400 units
Units produced 11 000 units

Marks
Required Sub-
Total
total
Determine the predetermined overhead rate, assuming the overheads
1.1 4 4
are absorbed based on direct labour hours.
1.2 Determine the budgeted cost drivers for each activity cost pool. 4 8
Calculate the budgeted production overhead cost per unit of Axe (to 2
1.3 10 18
decimal places of N$).
Total 18

Question 2 (26 marks)

Monica Enterprises is preparing its overhead budgets for a forthcoming period. The company
has three production departments A, B and C, and two service departments X and Y.

The following figures have been produced:

A B C X Y
Overhead cost (N$) 40 000 42 000 45 000 40 000 42 000
Machine hours 15 000 12 000 13 000

Overhead is absorbed on a machine hour basis.

It has been estimated that service department usage is as follows:

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A B C X Y
Department X 20% 30% 10% 40%
Department Y 30% 30% 20% 20%

Marks
Required Sub-
Total
total
Define:
2.1 (i) Overhead allocation 2 2
(ii) Overhead apportionment. 2 4
Prepare a schedule of the overhead costs to be charged to
departments A, B and C, using the repeated distribution method to
2.2 10 14
apportion the service department costs to the production departments
(work to the nearest N$).
Calculate the overhead absorption rates for the period for departments
2.3 6 20
A, B and C (work to the nearest N$).
State why hourly rates are generally accepted to be the most
2.4 appropriate method of overhead absorption, and comment upon other 6 26
methods of absorption that may be used.
Total 26

Question 3 (17 marks)

Papercut Cc is a small manufacturing company that is attempting to value a raw material used
to produce one of its popular products. The company buys more and more stock of the material
to fulfil the growing demand and measuring the value of that inventory with more accuracy has
become more important.

Quantity (kg) Unit price/kg

1June 2023 Balance 1 000 N$ 5.50
5 June 2023 Receipts 1 500 N$ 6.30
7 June 2023 Receipts 2 000 N$ 6.70
13 June 2023 Issued 2 300
19 June 2023 Receipts 2 900 N$ 5.80
26 June 2023 Issued 3 850

The Production Manager is considering a review of the inventory control policy, and he
requests your advice.

MARKS
REQUIRED: Sub- Total
total
What is the difference between the periodic and perpetual 2 2
3.1 inventory system? Why would you advise the company to
pursue a perpetual inventory system?
Compile a stores ledger card and calculate the value of 6 8
3.2 inventory for the month of June using the First-in-first-out
(FIFO) method.

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Compile a stores ledger card and calculate the value of 8 16
3.3 inventory for the month of June using the Weighted Average
method.
Why is inventory valuation important and why does the choice 1 17
3.4
of method matter?
Total 17

Question 4 (10 marks)

Saima Petrus, a University of Namibia alumnus is an experienced cost accountant. She

recently took over the role of cost accountant at Namib Breweries Ltd, a company that
produces beverages. The previous cost accountant left the company abruptly without notice
leaving the accounting records in disarray. Saima requires the ending inventory balances for
the fourth quarter financial report.
The following information is available:

N$
Direct materials purchased 480 000
Work-in-progress (1 Oct 2023) 140 000
Direct materials (1 Oct 2023) 50 000
Finished goods (1 Oct 2023) 640 000
Conversion costs 1 320 000
Total manufacturing costs added during the period 1 680 000
Cost of goods manufactured 4 times direct
materials used
Gross margin 25%
Revenues 2 075 000

MARKS
REQUIRED: Sub- Total
total
4.1 Calculate Direct materials (31 December 2023) 4 4
4.2 Calculate Work-in-progress (31 December 2023) 3 3
4.3. Calculate Finished goods inventory (31 December 2023) 3 3
Total 10

Total assignment 2: 71 marks

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