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Gate 4 U ( Pty ) Ltd ( Gate 4 U ) manufactures and sells steel gates to customers for household yards. The
GateU Pty Ltd GateU manufactures and sells steel gates to customers for household
yards. The company was founded by Mr Mabasa in Soweto township in Gauteng province
and has a December financial yearend.
The following actual information relates to the financial year:
Raw material to manufacture one gate one unit
Rectangular tubes tubes of metres at R per tube
R
Box of welding Rods and gates wheels R per box
R
Gate Paint R per litres
R
Labour
The company has ten employees one supervisor and nine nonsupervising employees All
these employees were employed for the full financial year.
Manufacturing overheads
Electricity costs per gate Variable
R
Factory monthly rental Fixed
R
Supervisor monthly salary
R
Other expenses
Administrative expenses on average per month variable
R
Advertising expenses on average per month variable
R
Additional information
On January GateU had gates completed with a total cost of R
During the financial year, GateU manufactured gates while gates were
sold.
Selling price was R per gate.
Nonsupervising employees work hours per week weeks per year with three
weeks for annual leave at R per hour. All nonsupervising employees worked
overtime hours each for the financial year. It is company policy to pay overtime at two
times their normal rates. GateU charges both the cost of wages paid to employees
on leave and the overtime premium to direct labour.
Prepare the Actual Statement of Comprehensive Income for the
year ended December using direct costing principles.
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