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all the questions Question 2.2 (18 marks) Bobi Ltd is a company specialising in custom made bags to suit each client's specific requirements. Below are
all the questions Question 2.2 (18 marks) Bobi Ltd is a company specialising in custom made bags to suit each client's specific requirements. Below are details of two orders: On the 3rd of January 2021. Client Hileni placed an order for 180 toddler back packs at an agreed invoice price of NS140 per unit. This order was completed on the 18th of February 2021. On the 14th of February 2021. Client Cleophas placed an order for 130 tablet pouches at a selling price of N$95. The production employees went on a wage strike from the 25th of February 2021, which is still not resolved. Consequently, client Cleophas's order is work in process. Direct material Purchased: N$22 000 Issued to production: Client: Hileni - N$8 650 Client: Cleophas - N$4 270 Direct labour Client: Hileni - N$5 600 Client: Cleophas - N$2 200 Manufacturing overheads Budgeted manufacturing overheads NS21 000 Manufacturing overheads are absorbed using a machine hour basis. The normal monthly capacity is 600 machine hours. Adjustment for over/under applied overheads is done to the cost of goods sold. Actual manufacturing overheads totalled N$9 000 Machine hours Client: Hileni - 175 hours Client: Cleophas - 95 hours . Mark Sub- Total total 10 10 3 13 Requirement Calculate the total cost of Client Hileni's order, and the 2.2.1 accumulated cost thus far of client Cleophas's incomplete order. 2.2.2 Calculate if Bobi Ltd over or under applied overheads. 2.2.3 Did Bobi Ltd make a profit on client Hileni's order? Provide calculations to support your answer. Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these Total 5 18 18 Page 22 of 25
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