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3 . 8 . 9 . 2 0 2 4 LanuaryFebruary 2 0 % in the month of sale, and these debtors receive a 5
LanuaryFebruary in the month of sale, and these debtors receive a discOuntThe selling pice is R per unit excluding any discounts Al the goods produced each month areexpected to be sold in the same month. Socty percent of the sales is expected to be on credit andthe balance is for cash. Thirty percent of the cash sales is subject to a discount of Credit sales are usually collected as follows: in the month after the sale, and the rest is uSually writen off as bad debs.Manufacturing overheads are paid monthly. The overtheads are expected to amount to R forDecember including R for depreciation. Manufacturing overheads are expected to increaseby each month.per unit are expected to increase by with effect from February Labour Costs amoOunt to R per unit and are paid in the month in which they are incurred. Labour costsMaterials cost R per unit excluding any discounts All the materials are purchased for cash to takeadvantage of a discount of R is expected to be invested in a foxed deposit account on February Interest at per annum is receivable monthly, commencing February Selling and administrative costs are paid monthly and are expected to total R for February after an increase of takes place on February
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