QUESTION $1$

$(20$ Marks$)$

A company manufactures and sells a single product. Budgeted

data per unit of the product is:

$\backslash$table$[[,R$

$1\mathrm{.}1$ Prepare statements of Comprehensive income for both periods $($ie period $1$ & Period $2),$ using absorption costing, showing the actual results for each of the two periods.

$(7)$

The company wishes to compare the results reported in $(1\mathrm{.}1)$ above with those that would be reported using marginal costing.

Prepare the statement of comprehensive income for periods $($ie period $1$ & Period $2),$ using marginal costing, showing the actual results for each of the two periods.

$1\mathrm{.}2$ Explain fully why the profits reported in period $1$ differ when profit is calculated using absorption costing and marginal costing. Calculations are required to support your explanation.

$(6$

$1\mathrm{.}1$ Prepare statements of Comprehensive income for both periods $($ie period $1$ & Period $2),$ using absorption costing, showing the actual results for each of the two periods.

$(7)$

The company wishes to compare the results reported in $(1\mathrm{.}1)$ above with those that would be reported using marginal costing.

Prepare the statement of comprehensive income for periods $($ie period $1$ & Period $2),$ using marginal costing, showing the actual results for each of the two periods.

$1\mathrm{.}2$ Explain fully why the profits reported in period $1$ differ when profit is calculated using absorption costing and marginal costing. Calculations are required to support your explanation.

$(6)$

Question $2$

$(10$ Marks$)$

Use the following information to calculate the value of inventory on hand on April $30$ and issue price to production during April using FIFO inventory system.

$\backslash$table$[[01-$April,Beginning Inventory,$\backslash$table$[[50$ units @ R$15$ per$],[$unit$]]],[5,$Purchase,$135$ units @ $20$ per unit$],[9,$Issue to production,$95$ units$],[11,$Purchase,$\backslash$table$[[30$ units @ R$16$ per$],[$unit$]]],[16,$Purchase,$78$ units @ R$17$per unit$],[20,$Issue to production,$125$ units$],[30,$Issue to production,$65$ units$]]$

THE END

QUESTION $1$

$(20$ Marks$)$

A company manufactures and sells a single product. Budgeted data per unit of the product is:

$\backslash$table