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Marimba Sticks (Pty) Lid manufactures mallets. Mallets are sticks used in playing the musical percussion instrument called the marimba. The mallets are identical and produced
Marimba Sticks (Pty) Lid manufactures mallets. Mallets are sticks used in playing the musical percussion instrument called the marimba. The mallets are identical and produced in bulk in a single process for which the company uses a process costing system. The company's year-end is 31 December. Each individual mallet is relerred to as a unit. The mallets are produced from rubber. The rubber is sourced from an overseas company that is wettknown for its lack of respect for the environment. This supplier's factories are responsible for significant amounts of pollution and has a large carbon footprint. There are also rumours doing the rounds that the same supplier makes use of underage child labour at some of their factories and the supplier is also allegedly involved in money laundering. An extract from the budgeted information for the 2021 financial year is as follows: Additional information for the year ended 31 Decamber 2021 : - Normal losses are estimated at 4% of inputs that reach the wastage point. - Losses occur when the process is 60% complete. - Marimba Sticks uses the weighted average method of inventory valuation. REQUIRED (a) Prepare the budgeted quantity statement of Marimba Sucks for the 2021 financial year (b) Prepare the (6) budgeted production cost statemsent of Marimba Sticke for the 2021 financial year (3) (c) Identify and discuss brieffy three ethical concerns andior other qualitative factors reiated to Marimba's association with the overseas supplier that may have an adverse ellect on the business andfor reputation of Marimba Sticks. Your answer must be presented in the following format
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