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hi sir,
i am doing a question from june 2012 question 1 robber company.
i cant get my answer for part (a) for the direct materials keypads
i took $160,000/2 x 1·05 and got 84000 for the direct materials
now when i checked the answer they took
($160,000/2) + $160,000/2 x 1·05 and they got $164,000so i don’t understand why do we have to take $160,000/2 again after doing $160,000/2 x 1·05
please kindly guide me sir..
Note 1 of the question says that the materials costs for keypads will increase by 5% in 6 months time.
Therefore half of them will be at the current price and half of them will be at the increased price.
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