Month Quantity (Units) Unit price (R) Total Custom duties (R) Total Freight charges (R)

Question

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.

Answer 1

To calculate the total price per unit for the purchases made in January and June 20.22, we need to take into account not just the unit price but also the customs duties and freight charges associated with each purchase.

1. January Purchases:

• Quantity: 45 units
• Unit Price: R 4,500
• Total Custom Duties: R 9,000
• Total Freight Charges: R 4,500

Total Costs for January:

• Total Cost = (Unit Price × Quantity) + Total Custom Duties + Total Freight Charges
• Total Cost = (R 4,500 × 45) + R 9,000 + R 4,500
• Total Cost = R 202,500 + R 9,000 + R 4,500
• Total Cost = R 216,000

Total Price per Unit for January:

• Total Price per Unit = Total Cost / Quantity
• Total Price per Unit = R 216,000 / 45
• Total Price per Unit ≈ R 4,800

2. June Purchases:

• Quantity: 10 units
• Unit Price: R 4,800
• Total Custom Duties: R 3,500
• Total Freight Charges: R 2,000

Total Costs for June:

• Total Cost = (Unit Price × Quantity) + Total Custom Duties + Total Freight Charges
• Total Cost = (R 4,800 × 10) + R 3,500 + R 2,000
• Total Cost = R 48,000 + R 3,500 + R 2,000
• Total Cost = R 53,500

Total Price per Unit for June:

• Total Price per Unit = Total Cost / Quantity
• Total Price per Unit = R 53,500 / 10
• Total Price per Unit = R 5,350

Summary:

• Total price per unit for January: R 4,800
• Total price per unit for June: R 5,350