Question
Maphitha Limited produces a single type of a product. The company uses an actual costing system. The following information has been taken from the company's
Maphitha Limited produces a single type of a product. The company uses an actual costing system. The following information has been taken from the company's production and sales records for the month of April 2021: Sales units........................................................................................................................... 4 000 units Finished goods: Balance as at 01 April 2021................................................................................................. 1 000 units Balance as at 30 April 2021................................................................................................. 2 000 units Raw material: Balance as at 01 April 2021......................................................................... 500 kg @ R46,50 per kg Bought during the month.............................................................................. 1 500 kg @ R47,00 per kg Balance as at 30 April 2021......................................................................... 300 kg @? per kg Work-in-process: Balance as at 01 April 2021...................................................................................................... R 4 800 Balance as at 30 April 2021...................................................................................................... 2 750 Conversion costs: R Direct labour costs..................................................................................................................... 84 000 Manufacturing overhead incurred.............................................................................................. 59 300 Additional information: The finished goods are carried at the average unit production cost for the month. Raw material is valued according to the FIFO method of inventory valuation. REQUIRED: Calculate the following for April 2021: 1.1.1 Number of units produced 1.1.2 Cost of raw materials transferred to production 1.1.3 Cost of goods manufactured 1.1.4 Cost of each completed unit 1.1.5 Cost of goods sold.
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