Calculate the direct material cost.

Here are the solutions to your accounting questions.

2.1.1: Calculate the direct material cost.

Step 1: Calculate the weighted-average cost per metre for materials available for use.

$$\text{Weighted-average cost per metre} = \frac{\text{Total cost of material available for use}}{\text{Total metres available for use}}$$ $$\text{Weighted-average cost per metre} = \frac{\text{R}958\,800}{20\,400 \text{ metres}} = \text{R}47 \text{ per metre}$$

Step 2: Calculate the direct material cost (raw material issued to the factory).

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