Homework Answers

Spray painter :Jaco Manetti is employed as a spray painter at NBW on a contract. Since Jaco is on contract he opted to be paid his wage on a daily basis. As such he is remunerated on a differential piecework system based on the number of panels he sprays on a day. His supervisor is responsible for the allocation of panels to be worked on a particular. The supervisor ensures that the panels allocated would ensure a fair remuneration for Jaco.

Standard time allowed: 20 minutes per panel

Standard work day: 9 hours

Normal Wage rate: N$36 per hour

Premium: 90% of piecework rate if below standard

120% of piecework rate if standard or above standard

Jaco s production for the day: 32 units

Required:

Calculate the remuneration for Jaco for the day using the differential piecework system.

Quarter 2020 Unit purchased Cost per unit Total Purchases (N$) Units sold

1 300 30 9000 300

2 400 35 14000 300

3 400 36 14400 300

4 300 37 11100 300

1400 48500 1200

Inventory at the beginning of the 1st quarter was 500 units at N$29 per unit and inventory at the end of 4th quarter was 700 units.

Required:

2.1 FIFO method calculate the cost of good sold

2.2 LIFO method calculate the cost of good sold

2.3What is the gross profit for the year based on FIFO cost of sales figures given a marginal of 20%

2.4Re - order Level

2.5Mininmum inventory level

Lemons

Most of us have had the experience of purchasing a product that turned out to be a lemon - a product that did not live up to what it was supposed to be. According to Wikipedia; Lemon laws are laws that help provide consumers with a remedy for purchases of automobiles and other consumer goods in order to compensate consumers for products that repeatedly fail to meet standards of performance and quality.

The history of lemon laws came from the British who used the term “lemon” to refer to both a fruit and to a product of substandard quality. America started using the term lemon in 1909 to refer to something worthless.

Actions to Take:

Think of a purchase you have made that you felt was a "lemon," a product of substandard quality. How important are warranties to you in buying a product? How important is a business's return and customer service policy in buying a product? Please share your experience and how important warranties and customer service is to you in the purchase of a product.

For the following indicate whether it is a direct , indirect or period cost as well as whether it is fixed or variable.

Salaries

Factory workers

Factory management

Accounting Directors

Factory equipment

Office equipment

Buildings

Purchases from creditors

Raw material

Water and electricity

Factory

Office

Other

cleaners ( office) (fixed rate as per contract)

Entertainment (amount is spend every year)

External audit fees as per contract