(21) QUESTION 4 (20 marks) (24 minutes) Nozamayedwa (Pty) Ltd manufactures and sells a single product. The following information is available for 2020: Budgeted sales in units are as follows: Quarter Units 7 500 9 000 10 000 12 000 The budgeted selling price per unit is R200. Production requirements per unit of finished product from quarter 2 onwards are as follows: Direct labour: 3 hours at R60 per hour. Direct materials: 4 kg at R50 per kg. Variable manufacturing overheads: R25 per direct labour hour. Fixed manufacturing overheads per quarter are estimated at R75 000. Inventories on hand at the end of quarter 1 were as follows: Direct materials: 4 000 kg at R40 each. Finished goods: 1 500 units at R420 each No opening or closing inventory of work-in-process is kept. The company wishes its closing inventory of finished goods to be equal to 20% of the following quarters budgeted sales in units from quarter 2 onwards. The company policy was updated after quarter 1 to state that the closing inventory of direct materials must be equal to 25% of the current quarter's production requirements in kilograms. The company uses the first-in-first-out (FIFO) method for inventory valuation. REQUIRED: Prepare the following operational budgets for quarter 2 and quarter 3 respectively (show separate columns for quarter 2 and quarter 3 - no total column is required) 4.1 Sales budget 4.2 Production budget (in units) 4.3 Direct materials budget Direct labour budget 4.5 Production overheads budget QUESTION 5 (15 marks) (18 minutes) Motlalepula Limited financial statements for the years ended 31 December 2018 and 2019 are as follows: Motlalepula Limited Statement of profit or loss and other comprehensive income 2019 2018 R R Revenue 1 300 000 1450 000 Cost of sales (650 000) (750 000) Gross profit 650 000 700 000 Administrative expenses (100 000) (150 000) Distribution costs 150 000) (100 000) Operating profit 500 000 450 000 Interest paid (55 000 75 000) Profit before tax 445 000 375 000 Income tax expense (133 500 (112 500) Net profit for the period 311 500 262 500