hi somebody started this and never completed. here are the few answers completed. please complete 2.3- 2.9

this is the other page , apologises for forgetting

this is the question completed

A2.1 Non-manufacturing costs include those costs that are not incurred in the production process but are incurred for other business activities of the entity. These costs do not specifically contribute to the actual production of goods but are essential to ensure overall functioning of the business. Non-manufacturing costs are further divided into the following categories: 1. Marketing and selling costs 2. Administrative costs Marketing and selling costs: Marketing or selling costs include all costs necessary to secure customer orders and get the finished product into the hands of the customers. These costs are often called order getting or order filling costs. Examples of marketing or selling costs include advertising costs, shipping costs, sales commission and sales salary. Administrative costs: Administrative costs include all executive, organizational, and clerical costs associated with general management of an organization rather than with manufacturing, marketing, or selling. Examples of administrative costs include executive compensation, general accounting, secretarial, public relations, and similar costs involved in the overall, general administration of the organization as a whole A2.2 Product Cost is the cost that is attributable to the product, i.e. the cost which is traceable to the product and is a part of inventory values. It comprises of direct materials, direct labour and direct overheads Period Cost is just opposite to product cost, as they are not related to production, they cannot be apportioned to the product, as it is charged to the period in which they arise. These are based on time and mainly includes selling and administration costs like salary, rent Comparison Chart BASIS FOR COMPARISON PRODUCT COST PERIOD COST The cost that can be apportioned to The cost that cannot be assigned to the Meaning the product is known as Product product, but charged as an expense is known Cost as Period cost Which cost is regarded as Product/ Variable Cost Period Cost? Fixed Cost Are these costs included in Yes inventory valuation? Comprises of Manufacturing or Production cos Non manufacturing cost, ic. office & administration, selling & distribution, etc. Yes Part of Cost of Production No Cost of raw material, production Examples overheads, depreciation on Salary, rent, audit fees, depreciation on machinery, wages to labor, etc. office assets, insurance advertising etc. etc. No Required: Q.2.3 Calculate the variable costs per unit produced. (5) Q.2.4 (7) Calculate the fixed costs per month. (2) Q.2.5 Calculate the contribution margin per unit sold. Show your workings. (3) Q.2.6 Calculate the monthly break-even point in units. Show your workings. (2) Q.2.7 Calculate the monthly break-even point in sales revenue. Show the formula and your workings. Round to the nearest Rand Q.2.8 How many units needs to be sold in order to make a profit of at least R100 000 per (4) month. Q.2.9 Identify two period costs that Green Pty Ltd incurs. (2) (2) (Marks: 35) Question 2 Q.2.1 List and explain non-manufacturing costs of a company. (5) Q.2.2 Differentiate clearly between a product cost and a period cost, including some (5) examples. (Hint: Do not only give definition but clearly differentiate). The following information applies to Q.2.3 - Q.2.9 Green (Pty) Ltd manufactures a standard type of tricycle. The following are the budgeted costs: Unless stated otherwise, all amounts exclude VAT. Raw materials used R950 per unit produced Direct labour R300 per unit produced Factory foreman's wages R4 800 per month Rental of factory R7 200 per month Rates and taxes R1 550 per month Sales representatives' commission R200 per unit sold Advertising costs R15 500 per month Variable indirect materials used R70 per unit produced Insurance on factory R990 per month Quality controller R350 per month The business intends to sell the manufactured tricycles at R3 000 each plus VAT @ 15%. (Marks: 35) Question 2 Q.2.1 List and explain non-manufacturing costs of a company. (5) Q.2.2 Differentiate clearly between a product cost and a period cost, including some (5) examples. (Hint: Do not only give definition but clearly differentiate). The following information applies to Q.2.3 - Q.2.9 Green (Pty) Ltd manufactures a standard type of tricycle. The following are the budgeted costs: Unless stated otherwise, all amounts exclude VAT. Raw materials used R950 per unit produced Direct labour R300 per unit produced Factory foreman's wages R4 800 per month Rental of factory R7 200 per month Rates and taxes R1 550 per month Sales representatives' commission R200 per unit sold Advertising costs R15 500 per month Variable indirect materials used R70 per unit produced Insurance on factory R990 per month Quality controller R350 per month The business intends to sell the manufactured tricycles at R3 000 each plus VAT @ 15%. Required: Q.2.3 Calculate the variable costs per unit produced. (5) Q.2.4 (7) Calculate the fixed costs per month. (2) Q.2.5 Calculate the contribution margin per unit sold. Show your workings. (3) Q.2.6 Calculate the monthly break-even point in units. Show your workings. (2) Q.2.7 Calculate the monthly break-even point in sales revenue. Show the formula and your workings. Round to the nearest Rand Q.2.8 How many units needs to be sold in order to make a profit of at least R100 000 per (4) month. Q.2.9 Identify two period costs that Green Pty Ltd incurs. (2) (2)