QUESTION 1 (20 MARKS) 1.1 REQUIRED Use the first-in-first-out (FIFO) method to complete the table provided below for the stated transactions. (4 marks) INFORMATION The following transactions of Max Enterprises took place during August 2022 in respect of a component used in production: Date Transactions 01 Opening inventory 180 units @ R10 per unit 07 Purchased from a supplier 900 units @ R11 per unit 15 Issued to production 630 units 24 Purchased from a supplier 540 units @ R12 per unit 27 Returned to the supplier (see 24th) 100 units 30 Issued to production 600 units Table to complete: Purchases Issues and returns Balance Date Quantity Price Amount Quantity Price Amount Quantity Price Amount 1.2 REQUIRED Use the information provided below to calculate the amount earned by Joan on 19 July 2022. (4 marks) INFORMATION Joans normal wage is R360 per hour and her normal working day is 8 hours. The standard production time for each employee is 10 minutes per unit. On 19 July 2022, Joans production was 60 units. Using the Halsey bonus system, a bonus of 50% of the time saved is given to Joan. 1.3 REQUIRED Use the information provided below to calculate the following variances. Each answer must indicate whether the variance is favourable or unfavourable. 1.3.1 Material quantity variance (4 marks) 1.3.2 Labour rate variance (4 marks) 1.3.3 Variable manufacturing overheads efficiency variance (4 marks) INFORMATION The standard variable costs per unit (with a standard quantity of 25 000 units), set by Kidman Manufacturers, for Product M are as follows: Materials 4 kg at R10 per kg Labour 2 hours at R20 per hour Variable overhead 2 hours at R12 per hour The actual costs for October 2022 are as follows: Materials 100 000 kg were purchased for R980 000 Materials 78 000 kg were used to produce 20 000 units of Product M Labour 41 000 labour hours at R19.60 per hour Variable overhead R500 200 incurred