june 2012 qn1 robber co — OpenTuition Forums

Ssattar7868y ago

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 $164,000 so 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..

John MoffatTutor8y ago#1

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.

Ssattar7868y ago#2

Thank you so much sir for helping me and guiding me.. :-):D

John MoffatTutor8y ago#3

You are welcome :-)

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