$4.$Budgeted factory overheads

$\backslash$table$[[$Overheads$,\backslash$table$[[$Processing$],[$R$]],\backslash$table$[[$Canning$],[$R$]]],[$Variable overhead rate per direct labour hour:,,$],[$Indirect materials,$0\mathrm{.}50,0\mathrm{.}25],[$Indirect labour,$0\mathrm{.}25,0\mathrm{.}75],[$Power$,0\mathrm{.}02,0\mathrm{.}15],[$Maintenance$,0\mathrm{.}25,0\mathrm{.}10],[,,],[$Fixed overheads:,,$7000],[$Indirect materials,$71000,22000],[$Indirect labour,$25000,1750],[$Depreciation$,5250,9000],[$Maintenance$,12000,6275],[$Power$,9950,5200],[$Employee fringe benefits,$6700,]]$

$5.$Inventories Materials:

$\backslash$table$[[,$Pear,Sugar$],[$Beginning inventory units,$9000,2250],[$Ending inventory units,$13000,2750]]$

Work in process: There was no beginning or ending inventory

$6.$Finished goods:

$\backslash$table$[[$Product$,$Beginning inventory,$\backslash$table$[[$Ending inventory$],[$Units$]]],[$Units$,$Unit price R$],[$Pie pear,$450,100,250],[$Pear puree,$400,80,300]]$

$3$

$7.$Budgeted non$-$manufacturing overheads

$\backslash$table$[[$Overheads$,$R$],[$Salaries $($sales$),200000],[$Salaries $($office$),145000],[$Sales commission,$125000],[$Advertising$,75000],[$Motor vehicle expenses $($sales$),35000],[$Miscellaneous $($office$),90000],[$Stationary $($office$),15000],[$Depreciation $($office$),7500]]$

$8.$The budgeted statement of financial position for the previous year end $31$ Dec $2022$ was:

$\backslash$table$[[,$R$,$R$],[$Non$-$current assets,,$2186130],[$Property and equipment,$2604740,],[$Accumulated depreciation,$418610,],[$Current assets,,$965995],[$Inventory:$],[$Finished goods,$77000,],[$Raw materials,$95625,],[$Trade Receivables,$442310,],[$Cash$,351060,],[$Total assets,,$3152125],[$Equity and liabilities$],[$Equity$,,2022100],[$Ordinary share capital,$1000000,],[$Retain

$\backslash$table$[[,,],[$Non$-$current liabilities,,$],[$Loan$,,],[,,],[$Current liabilities,$850000,],[$Trade payables,,$],[$Total equity and liabilities,,$]]$

$9.$Budgeted cash flows are as follows:

$\backslash$table$[[,\backslash$table$[[$Quarter $1],[$R$]],\backslash$table$[[$Quarter $2],[$R$]],\backslash$table$[[$Quarter $3],[$R$]],],[$Receipts from customers,$650000,500000,900000,850000],[$Payments$,,,,],[$Materials$,240000,180000,240000,290000],[$Wages$,190000,170000,230000,210000],[$Other costs and expenses,$180000,180000,184400,185632]]$

Required:

After reading the relevant information, prepare a complete set of budgets consisting of:

$($a$)$ Sales budget

$($b$)$ Production budget

$($c$)$ Materials usage budget

$($d$)$ Materials purchases budget

$($e$)$ Direct labour budget

$($f$)$ Cash budget

$($g$)$ Budgeted statement of comprehensive income

$($h$)$Budgeted statement of financial position

NB: Round off cost per unit to $2$ decimal places and total costs to the nearest rand.

$$

QUESTION $1$

Izithelo company is situated in Ceres they are involved in the canned fruit industry their main activity is the processing and caning of apples. They use a standard cost system to control costs. In the processing department the pears are cooked halved and diced and canned in the canning department. The two main ingredients which are used in the processing of the peaches are pear and sugar. The processing results in two products pear pie and pear puree

The budget committee have made estimates for the coming year ending $31$ December $2023,$ these estimates are given in the tables below.

Sales

$\backslash$table$[[$Product$,$Western Cape,Eastern Cape$],[$Pear pie,$6500,5500],[$Pear puree,$8500,6500]]$

The selling prices are R $140$ and R $110$ per tin of pie apples and apple puree, respectively.

$2.$ Materials quantity requirements and unit costs:

$\backslash$table$[[$Product$,$Materials$],[$Pear$,$Sugar$],[$Pear pie,$3,1\mathrm{.}25],[$Pear puree,$4,0\mathrm{.}5],[$Material cost per unit,$R,R2\mathrm{.}50$