SUBJECT: COST AND MANAGEMENT ACCOUNTING 1Assignment 1

1.

a.

MonthCost (N$)Units

HighDecember3 7001 000

LowSeptember(2 500)(600)

1200400

b.

c. When activity =1020Fixed cost $700Variable Cost(1020X$3)+$3060 $3760

2.

LIFO

MonthPurchases(units)Sales(units)Opening Balance$Stock MovementClosing Stock Balance$

01 Jan 800 @ N$10 each80008000

04 April1 000 @ N$12 each80001200020000

11 April3 000 @ N$15 each200004500065000

13 April2 000650002000@$15=3000035000

22 April2000 @ N$15 each350003000065000

26 April3 500650003000@$15=45000500@$12=6000Total= 5100014000

FIFO

MonthPurchases(units)Sales(units)Opening Balance$Stock MovementClosing Stock Balance$

01 Jan 800 @ N$10 each80008000

04 April1 000 @ N$12 each80001200020000

11 April3 000 @ N$15 each200004500065000

13 April2 00065000800@$10=80001000@$12=12000200@$15=3000Total=2300042000

22 April2000 @ N$15 each420003000072000

26 April3 500650003500@$15=52500

12500

3.

LIFO

MonthReceipt (units)Issue(units)Opening BalanceStock MovementClosing Stock Balance

01 OctoberBalance b/d500 @ $1.20200 @ $1.25

850850

08 October600 @ N$1.30 8507801630

20 October600 @ N$1.50 16309002530

13 April15002530600 @$1.50=900600 @$1.30=780200@$1.25=250100@$1.20=120Total=2050480

4.