$$NEW ERA Ltd$$ manufacturers steel cabinets. They want to know what the cost was to produce one

cabinet during the year $31$ December $2022.$ The following information is available for the year ended

$31$ December $2022.$

N$

Indirect material used $17000$

Raw material purchased $180000$

Raw material returned $8000$

Sales $580000$

Rent $35000$

Indirect labour $21000$

Freight on direct material $6000$

Direct labour $55000$

Freight on sales $3000$

Telephone $7500$

Packing of finished products $6500$

Interest received $8000$

Advertising $19900$

Insurance $44000$

Depreciation$-$ Factory $17000$

Additional information

$1.75\%$ of insurance, telephone and rent was for the factory.

$2.$ Number of units produced: $10000$ units.

$3.$ Finished product are transferred to the sales department at cost plus $25\%.$

Inventory balances: $01-01-202231-12-2022$

N$ N$

Finished products $2200018000$

Raw material $2900031000$

Work in progress $900011000$

FACULTY OF COMMERCE, MANAGEMENT AND LAW

OLD CURRICULUM MODULES

Page $21$ of $21$

YOU ARE REQUIRED TO:

$1.$ Compile a manufacturing cost statement for the year ended $31$ December $2022.(20$ marks$)$

$2.$ Calculate the manufacturing cost per unit. $(2$ marks$)$

$3.$ Calculate the unrealised profit in closing inventory as at $31$ December $2022$