5.1 CONCEPTS Choose the cost category for the examples beiow. Wite only the cost category next to the question number in the ANSWER BOOK. Direct Material Cost, diroct labour cost; factory overtead cost; administration cost selling and distribution cost. 5. 1.1 Depreciation on office equipment. 5.1.2 Cost of raw materials used in the production process. 5.1.3 Wages of the cleaning staff for the factory. 5.1.4 Commission paid to the sales staft. 5.2 KWA-MABULA MANUFACTURERS You are provided with information relating to Kwa-Mabula Manutacturers for the year ended 28 February 2020 . The business produces cricket bats that they sell to various retalers at a mark-up of 50%. REQUIRED 5.2.1 Calculate the Direct Material Cost. 5.2.2 Calculate the Factory Overhead Cost. INFORMATION A. naw. GRADE 12 ACCOUNTIG B. C. Additional information and adjustments i. Trade discount of R6 500 on raw material purchases has not been recorded. C. Additional information and adjustments 1. Trade discount of R6 500 on raw material purchases has not been recorded. ii. The salaries and wages consisted of: R180 000 for direct labour, Rgo 000 for administration and the rest for indirect labour. All employees contribute 1\% towards the Unemployment insurance Fund and 7.5\% to the Pension Fund. The business contributes 1% to the Unempioyment linsurance Fund and R1,50 for every R1.00 towards the Pension Fund. iii. Addaional equipment was bought on credit on 1 September 2020 . This has been recorded. Equipment is depreciated at 20% on the diminishing balance method. IW. The rent expense is allocated aceording to the floor space: - Factory - 16000m2 - Admiristration 1500m2 - Sales - 2500m2 v. The water and electricily expense for the office is R10 000 and for the sales department R14 000 GRADE 12 ACCOUNTINS 5.3 IGLOO MANUFACTURERS Igloo Manulacturers makes and sells ice lollies at R15 each. The price has stayed the same for the last two years. During the year ended 30 June 2020 they made 40000 lollies. There are no stocks of ice lolles at the beginning or the end of the year. REQUIRED 5.3.1 Calculate the prime cost for the year ended 30 June 2020. 5.3.2 Calculate the break-even point. 5.3.3 Provide TWO reasons for the increase in the Direct Matenal unit cost 5.3 IGLOO MANUFACTURERS Igloo Manufacturers makes and sells ice lollies at R15 each. The price has stayed the same for the last two years. During the year ended 30 June 2020 they made 40000 lollies. There are no stocks of ice lollies at the beginning or the end of the year. REQUIRED 5.3.1 Calculate the prime cost for the year ended 30 June 2020. 5.3.2 Calculate the break-even point. 5.3.3 Provide TWO reasons for the increase in the Direct Material unit cost INFORMATION The following information was extracted from the books of Igloo Manufacturers for the year ended 30 June 2020