00:01
So here we have a costing exercise for steel versus aluminum.
00:08
So we need to produce 8 ,000 of these things.
00:11
And we're told a whole bunch of information, right? steel is going to be 380 per kilogram and aluminum is going to be 870 per kilogram.
00:23
Right? so the steel unit weighs 110 grams and which is equal to 0 .3.
00:32
1 .11 kg.
00:34
And the aluminum unit weighs 30 grams, which is equal to 0 .03 kg, right, dividing by 1 ,000.
00:44
When steel is used, 50 units can produce per hour.
00:49
Okay, so first of all, let's find the cost of the weight, right? so this means that the weight of 8 ,000 is equal to 0 .11 times 8 ,000, which, is equal to, i mean i should be able to do that in my head, right, but it's early morning here and i'm going to use a calculator for a lot of parts of this question anyway.
01:16
This is of course 880, brilliant.
01:19
Means that we need 880 kilograms, right? and at 380 per kilogram, right, this gives us a total cost in terms of steel of, 3 ,344.
01:44
So for aluminum, this is 0 .03 times 8 ,000.
01:50
That is equal to 240 kilograms.
01:55
The cost per kilogram of aluminum is 870.
01:59
So this gives me a cost of aluminum of, of again run to my calculator, 2088.
02:15
So this is the cost of the raw material that we need...