These balances and totals appeared in the books of Thula Manufacturers Ltd as at 31 December 20x4:

Adjustments and further information:

• An amount of R20 000 is erroneously debited against the purchases account (other inventory), instead of raw material. Correct the error.

• R600 000 is in respect of direct labour costs, whilst the residue is for indirect manufacturing labour.

• The size of the factory is 250 m². The rent amounts to R400/m² per annum.

• 60% of the electricity is in respect of manufacturing.

• Depreciation is determined as follows:

– Manufacturing equipment is written off in ten equal payments.

– Thula Manufacturers Ltd bought the manufacturing equipment on 1 January 20x1.

– 15% per annum on vehicles according to the reducing-balance method.

You are required to:

Prepare the statement of the cost of goods manufactured for the year ended 31 December 20x4.

Transcribed Image Text:

Inventory: Raw material - 1 January 20x4 Raw material purchased during the year Labour cost Rent Electricity Manufacturing equipment at cost Delivery vehicles at cost Accumulated provision for depreciation (1 January 20x4): Manufacturing equipment Delivery vehicles Uncompleted goods - 1 January 20x4 Inventory of completed goods - 1 January 20x4 Sundry sales and administrative expenses Inventory on 31 December 20x4: Raw material Uncompleted goods Completed goods Purchases (other inventory) 90 000 00 780 000 00 655 000 00 150 000 00 75 000 00 100 000 00 50 000 00 30 000 00 15 000 00 33 000 00 315 000 00 170 000 00 120 000 00 31 500 00 450 000 00 100 000 00