Accounting Q4

- A deposit of R21 343 made on 31 May 2022 - Cheque 597 (dated 15 June 2022), R14 350 - An EFT payment appeared correctly in the Bank Statement as R5 678. The Cash Journal shows this EFT as R6 578 . Required: 3.1 Calculate the correct Bank Account balance on 31 May 2022. Indicate whether this is favourable or unfavourable. 3.2 Calculate the bank statement balance on 31 May 2022. Question 4 The following relates to Dress outfitters: The business manufactures clothing products. The information relates to school dresses which is one of the products they manufacture. Dresses are manufactured according to orders received and there is no work-in-progress. The financial year ended on 30 April 2022. Additional information: Raw Materials Production and sales: Manufacturing one dress requires 1,6 metres of fabric 17 Rnn dresses were produced and sold during the financial year at R75 per dress. Normal time comprises a 5-day week of 8 hours per day. The factory operates for 46 weeks each year Factory overhead costs The followina costs were extracted from the records on 30 April 2022 Factory rent is split according to floor space occupied. The dress-making section occupies 320m2 of the total factory space of 1280m 2. 15% of the total water and electricity account must be allocated to the dressmaking section. Insurance on factory equipment was paid up to 30 June 2021. Dress-making equipment comprises 1/3 of the total factory equipment. Only one of the six cleaners, Susan, was allocated to the dressmaking section. Susan earns 10% less than the other five cleaners. Total variable costs amounted to R1094700 (R61,50 per unit) Fixed costs, comprising factory overhead costs and administration costs, totalled R229 500 Required 4.1 Complete the Factory Overhead Cost Note for the school dresses. (15 Marks) 4.2 Calculate the total cost of production of school dresses produced (5 Marks) 4.3 Calculate the cost of this wastage to the business (Show wastage in Meters and Rands) (5 Marks) 4.4 You have identified a concern about the direct labour cost for the school dresses, prepare an explanation with supporting. Provide possible causes and solutions to this problem. (8 Marks) Calculate the number of units required to break even, and comment briefly on the current volumes of the business (5 Marks) - A deposit of R21 343 made on 31 May 2022 - Cheque 597 (dated 15 June 2022), R14 350 - An EFT payment appeared correctly in the Bank Statement as R5 678. The Cash Journal shows this EFT as R6 578 . Required: 3.1 Calculate the correct Bank Account balance on 31 May 2022. Indicate whether this is favourable or unfavourable. 3.2 Calculate the bank statement balance on 31 May 2022. Question 4 The following relates to Dress outfitters: The business manufactures clothing products. The information relates to school dresses which is one of the products they manufacture. Dresses are manufactured according to orders received and there is no work-in-progress. The financial year ended on 30 April 2022. Additional information: Raw Materials Production and sales: Manufacturing one dress requires 1,6 metres of fabric 17 Rnn dresses were produced and sold during the financial year at R75 per dress. Normal time comprises a 5-day week of 8 hours per day. The factory operates for 46 weeks each year Factory overhead costs The followina costs were extracted from the records on 30 April 2022 Factory rent is split according to floor space occupied. The dress-making section occupies 320m2 of the total factory space of 1280m 2. 15% of the total water and electricity account must be allocated to the dressmaking section. Insurance on factory equipment was paid up to 30 June 2021. Dress-making equipment comprises 1/3 of the total factory equipment. Only one of the six cleaners, Susan, was allocated to the dressmaking section. Susan earns 10% less than the other five cleaners. Total variable costs amounted to R1094700 (R61,50 per unit) Fixed costs, comprising factory overhead costs and administration costs, totalled R229 500 Required 4.1 Complete the Factory Overhead Cost Note for the school dresses. (15 Marks) 4.2 Calculate the total cost of production of school dresses produced (5 Marks) 4.3 Calculate the cost of this wastage to the business (Show wastage in Meters and Rands) (5 Marks) 4.4 You have identified a concern about the direct labour cost for the school dresses, prepare an explanation with supporting. Provide possible causes and solutions to this problem. (8 Marks) Calculate the number of units required to break even, and comment briefly on the current volumes of the business