$1\mathrm{.}3$

REQUIRED

Complete the following table that would reflect the value of issues to production and inventory balances

using the weighted average cost method of inventory valuation:

Purchases Issues$/$Returns Balance

Date Quantity Price Amount Quantity Price Amount Quantity Price Amount

$(5$ marks$)$

INFORMATION

Kerman Manufacturers made the following purchases of components and issues to production during

the first half of May $2024$:

May Transactions

$01$ The opening inventory comprised $1400$ components at R$9$ per unit.

$07600$ units were purchased from a supplier at R$10$ per unit.

$113000$ units were purchased from a supplier at R$10$ per unit.

$154000$ units were issued to production.

$1\mathrm{.}4$

REQUIRED

Use the information given below to calculate the following variances. In each case also state whether

the variance is favourable or unfavourable.

$1\mathrm{.}4\mathrm{.}1$ Sales price variance $(3$ marks$)$

$1\mathrm{.}4\mathrm{.}2$ Sales quantity variance $(3$ marks$)$

INFORMATION

The budgeted sales of Klicks Enterprises for May $2024$ were $5000$ units. The standard selling price

was R$25$ per unit. The standard cost was R$15$ per unit. The actual sales for May $2024$ were $5200$

units at a total value of R$124800.$

QUESTION $2(20$ Marks$)$

REQUIRED

Use the information provided below to prepare the Income Statement for the year ended $31$ May $2024$

using the following methods:

$2\mathrm{.}1$ Marginal costing $(10$ marks$)$

$2\mathrm{.}2$ Absorption costing. $(10$ marks$)$

INFORMATION

The following information was extracted from the accounting records of Blight Limited, a manufacturer

of rechargeable globes, for the year ended $31$ May $2024$:

Inventory on $01$ June $20230$

Production for the year $($units$)50000$

Sales for the year $($units$)40000$

Selling price per unit R$70$

Variable manufacturing costs per unit:

Direct materials R$10$

Direct labour R$5$

Overheads R$3$

Variable selling costs per unit R$2$

Fixed manufacturing overhead costs R$1000000$

Fixed selling and administrative costs R$300000$