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Month Quantity (Units) Unit price (R)

Total Custom duties (R) Total Freight charges (R)
January 45 4 500 9 000 4 500
June 10 4 800 3 500 2 000

An extract from the sales account reflected the following:
Month Sales units Selling price per unit (R)
February-May 35 5 000
June-November 25 5 500

Additional information:
1. Freight charges and custom duties are charged on the whole consignment of laptops.
2. Mac Ltd is not registered as a VAT vendor.
3. The reporting period of Mac Ltd ended 31 December 20.22.
QUESTION 5: REQUIRED Marks
a) Calculate the total price per unit for the purchases made in January and June 20.22 respectively

1 answer

To calculate the total price per unit for the purchases made in January and June 20.22 respectively, we need to consider the quantity, unit price, total custom duties, and total freight charges for each month.

January:

  1. Quantity: 45 units
  2. Unit Price: R4,500
  3. Total Custom Duties: R9,000
  4. Total Freight Charges: R4,500

Total Cost Calculation:

  • Total purchase cost before custom duties and freight = Unit Price × Quantity
  • Total purchase cost = R4,500 × 45 = R202,500
  • Total cost including custom duties and freight = Total purchase cost + Custom Duties + Freight Charges
  • Total cost including custom duties and freight = R202,500 + R9,000 + R4,500 = R216,000

Total Price per Unit:

  • Total Price per Unit (January) = Total cost including custom duties and freight / Quantity
  • Total Price per Unit (January) = R216,000 / 45 = R4,800

June:

  1. Quantity: 10 units
  2. Unit Price: R4,800
  3. Total Custom Duties: R3,500
  4. Total Freight Charges: R2,000

Total Cost Calculation:

  • Total purchase cost before custom duties and freight = Unit Price × Quantity
  • Total purchase cost = R4,800 × 10 = R48,000
  • Total cost including custom duties and freight = Total purchase cost + Custom Duties + Freight Charges
  • Total cost including custom duties and freight = R48,000 + R3,500 + R2,000 = R53,500

Total Price per Unit:

  • Total Price per Unit (June) = Total cost including custom duties and freight / Quantity
  • Total Price per Unit (June) = R53,500 / 10 = R5,350

Summary:

  • Total Price per Unit for January: R4,800
  • Total Price per Unit for June: R5,350