1.1 REQUIRED Study the information given below and draw up the Production Budget for January and February 2024. (6 marks) INFORMATION The number of units of Product X expected to be sold by Questor Manufacturers and the desired closing inventory (in units) for the period 01 December 2023 to 28 February 2024 is given below: Month Sales Closing inventory December 2023 24 000 6 000 January 2024 16 000 5 400 February 2024 14 000 5 000 1.2 REQUIRED Calculate the following from the information provided below: 1.2.1 Value of closing inventory using the first-in-first-out (FIFO) method (3 marks) 1.2.2 Value of issues to production using the first-in-first-out (FIFO) method (2 marks) 1.2.3 Value of closing inventory using the weighted average cost method (4 marks) INFORMATION The following transactions of Gem Manufacturers took place during August 2022 in respect of a component used in production: Aug 01 Opening inventory 1 000 units at R20 per unit 11 Purchased from a supplier 3 000 units at R21 per unit 17 Purchased from a supplier 1 800 units at R22 per unit 18 Returned to the supplier (see 17 August) 800 units 31 Issues to production during August 3 800 units 1.3 REQUIRED Use the information given below to calculate the most economic quantity to order each time for 2023 (expressed to next whole number). (5 marks) INFORMATION Milton Wholesalers expects to sell approximately 3 600 cases of soap per month during 2023. Each case of soap costs R200. The cost of placing an order for soap is estimated to be R20. The inventory holding cost of one case of soap is 5% of the unit purchase price. QUESTION 2 (20 Marks) REQUIRED Prepare the Pro Forma Statement of Financial Position as at 31 December 2023 from the Statement of Financial Position and additional information provided below: INFORMATION The financial position of Gatti Limited as at 31 December 2022 is reflected the following statement: Statement of Financial Position as at 31 December 2022 R ASSETS Non-current assets 1 400 000 Property, plant and equipment 1 200 000 Fixed deposits 200 000 Current assets 5 800 000 Inventories 3 400 000 Accounts receivable 2 000 000 Cash and cash equivalents 400 000 Total assets 7 200 000 EQUITY AND LIABILITIES Equity 4 680 000 Ordinary share capital 3 600 000 Retained earnings 1 080 000 Non-current liabilities 720 000 Long-term loan 720 000 Current liabilities 1 800 000 Accounts payable 1 800 000 Total equity and liabilities 7 200 000 Additional information The following must be taken into account for 2023: Sales are forecast at R60 000 000, with a profit margin of 10% and a gross margin of 30%. Fifty percent (50%) of the sales is expected to be for cash and the balance is on credit. The debtor collection period is expected to be 36.5 days. All purchases of inventories are expected to be on credit and are estimated to total R48 000 000. The creditor payment period is estimated to be 73 days. Equipment with a cost price of R8 000 000 is expected to be purchased on 01 July 2023. Total depreciation is expected to be R800 000 for the year. The maturity dates of the fixed deposits are as follows: R80 000 01 May 2023 R120 000 31 May 2025 The loan balance is expected to be reduced by R60 000. The directors are expected to recommend a final dividend of R4 000 000, payable during 2024. A bank balance of 1% of sales is desired. Ordinary share capital will remain unchanged. The amount of external non-current funding required must be calculated (balancing figure).