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Part B All things sweet and tasty (Pty) Ltd produces one of the best cakes and dessert products in Tshwane. The company's managing director who
Part B All things sweet and tasty (Pty) Ltd produces one of the best cakes and dessert products in Tshwane. The company's managing director who is also responsible for costing used the account cost classification method to compile the following information. 1) Wage records showed that compensation for production employees costs R0.70 per confectionery product made. 2) Inspection of several invoices from milling companies indicated that flour costs the company RO.80 per confectionery product made. Page 6 of 7 3) Depreciation schedules reflected that monthly depreciation on production building and equipment is R3 000. 4) Payroll records showed that the production supervisor's salary totals R15 000 per month. 5) Advertising invoice from the community newspaper company reflected R2 000 per month. Marks [5] Required Classify each cost item in terms of the following classifications: a) Period or product cost. b) Cost assignment (direct or indirect, where applicable) and c) Cost behaviour (fixed - discretionary or committed, variable, mixed or semi fixed cost) Example 1. factory rent-a) product, b) indirect, c) fixed committed
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