Ltd is a manufacturer and retailer of high-quality swimwear. The senior au ble for the preparation of the end of the year management accounts has unfc The financial director requests your assistance to hualise the end of the ccounts Howing information is provided to you for the reporting period ended 3- ber 2020: uipment used to sew swimwear was purchased on 1 April 2018 for R1 cluding VAT) Installation cost amounted to R100 000. During the cours porting period under review, it was decided to change the method of deprecia z reducing balance method at 20% per annum to the units of production met pe of manufacturing equipment is expected to produce 650 000 tons befo ecommissioned . the following production levels were recorded by the operations manager Tons Produced 1 April 2018 - 31 December 2018 140 000 tons 1 January 2019 - 31 December 2019 150 000 tons 1 January 2020 - 31 December 2020 120 000 tons During the course of the year Summer Ltd received notice from a customer sta swimwear sold to him was made with inferior quality material causing a rash on The customer initiated a claim for all medical expenses caused by wearing the su The company's lawyers are of the opinion that the lawsuit will succeed a determined the following possible amounts that could be paid for damages an incurred . R50 000 (10% possibility) R70 000 (40% possibility) R80 000 (50% possibility) The following information for inventory was provided to you regarding inventorie instigate a $ w nilings Review View Help 101 11.1 12 B 1.13.1. 14:1 1.2.1 4:1.5.6.1.7.1 e customer initiated a claim for all medical expenses caused by wearing the sw e company's lawyers are of the opinion that the lawsuit will succeed an ermined the following possible amounts that could be paid for damages and uired: R50 000 (10% possibility) R70 000 (40% possibility) R80 000 (50% possibility). . e following information for inventory was provided to you regarding inventories Cost per Closing stock units unit Total Realisa Valu 26 OC 2500 1 200 Raw material used in the finished roducts inished products Consumables 2 300 300 ? 6 ? 1 60 Page 4 of 7 vestigate W Mailings Review View Help 14 11 13 10 1 4. 5 6.1.7.1 2.1.3.1 TION 1 (CONTINUED) ne junior cost accountant provides you with the following information for raw mate Finished goods Manufacturing cost (excluding VAT) VAT on manufacturing costs Delivery cost R per un 15.50 2.33 2.10 wimwear sales decreased during the year due to the pandemic and lock down. TF zlling price per unit of finished product was decreased from R25 to R21 per unit -gent's commission amounts to R3.75 per product sold. Summer Ltd summoned its supplier, Water Ltd for selling inferior material that resuf Lub-standard swimwear being produced The court case is in progress at the mo and Summer Ltd's lawyers are of the opinion that Summer Ltd would possibly suc vith the claim. If the claim is successful Water Ltd will be liable to pay Super Hero L 000 000 On 1 February 2021 the warehouse of Summer Ltd was broken into when the fore neglected to activate the alarm. Inventories to the value of R22 000 were stolen expected that the insurance company will not make any payment towards the loss the negligence of the foreman. A meeting will be held on 31 March 2021 to authorise the current period's fina statements for issue UIRED: lose the relevant notes to the Statement of Financial Position for Summer Ltd fc rting penod ended 31 December 2021 to comply with International Financial Repe dards (IFRS) se note: Notes on the accounting policy are not required estigate a Ltd is a manufacturer and retailer of high-quality swimwear. The senior au ble for the preparation of the end of the year management accounts has unfc The financial director requests your assistance to hualise the end of the ccounts Howing information is provided to you for the reporting period ended 3- ber 2020: uipment used to sew swimwear was purchased on 1 April 2018 for R1 cluding VAT) Installation cost amounted to R100 000. During the cours porting period under review, it was decided to change the method of deprecia z reducing balance method at 20% per annum to the units of production met pe of manufacturing equipment is expected to produce 650 000 tons befo ecommissioned . the following production levels were recorded by the operations manager Tons Produced 1 April 2018 - 31 December 2018 140 000 tons 1 January 2019 - 31 December 2019 150 000 tons 1 January 2020 - 31 December 2020 120 000 tons During the course of the year Summer Ltd received notice from a customer sta swimwear sold to him was made with inferior quality material causing a rash on The customer initiated a claim for all medical expenses caused by wearing the su The company's lawyers are of the opinion that the lawsuit will succeed a determined the following possible amounts that could be paid for damages an incurred . R50 000 (10% possibility) R70 000 (40% possibility) R80 000 (50% possibility) The following information for inventory was provided to you regarding inventorie instigate a $ w nilings Review View Help 101 11.1 12 B 1.13.1. 14:1 1.2.1 4:1.5.6.1.7.1 e customer initiated a claim for all medical expenses caused by wearing the sw e company's lawyers are of the opinion that the lawsuit will succeed an ermined the following possible amounts that could be paid for damages and uired: R50 000 (10% possibility) R70 000 (40% possibility) R80 000 (50% possibility). . e following information for inventory was provided to you regarding inventories Cost per Closing stock units unit Total Realisa Valu 26 OC 2500 1 200 Raw material used in the finished roducts inished products Consumables 2 300 300 ? 6 ? 1 60 Page 4 of 7 vestigate W Mailings Review View Help 14 11 13 10 1 4. 5 6.1.7.1 2.1.3.1 TION 1 (CONTINUED) ne junior cost accountant provides you with the following information for raw mate Finished goods Manufacturing cost (excluding VAT) VAT on manufacturing costs Delivery cost R per un 15.50 2.33 2.10 wimwear sales decreased during the year due to the pandemic and lock down. TF zlling price per unit of finished product was decreased from R25 to R21 per unit -gent's commission amounts to R3.75 per product sold. Summer Ltd summoned its supplier, Water Ltd for selling inferior material that resuf Lub-standard swimwear being produced The court case is in progress at the mo and Summer Ltd's lawyers are of the opinion that Summer Ltd would possibly suc vith the claim. If the claim is successful Water Ltd will be liable to pay Super Hero L 000 000 On 1 February 2021 the warehouse of Summer Ltd was broken into when the fore neglected to activate the alarm. Inventories to the value of R22 000 were stolen expected that the insurance company will not make any payment towards the loss the negligence of the foreman. A meeting will be held on 31 March 2021 to authorise the current period's fina statements for issue UIRED: lose the relevant notes to the Statement of Financial Position for Summer Ltd fc rting penod ended 31 December 2021 to comply with International Financial Repe dards (IFRS) se note: Notes on the accounting policy are not required estigate a