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QUESTION 1 Izithelo company is situated in Ceres they are involved in the canned fruit industry their main activity is the processing and caning of
QUESTION
Izithelo company is situated in Ceres they are involved in the canned fruit industry their main activity is the processing and caning of apples. They use a standard cost system to control costs. In the processing department the pears are cooked halved and diced and canned in the canning department. The two main ingredients which are used in the processing of the peaches are pear and sugar. The processing results in two products pear pie and pear puree
The budget committee have made estimates for the coming year ending December these estimates are given in the tables below.
Sales
tableProductWestern Cape,Eastern CapePear pie,Pear puree,
The selling prices are R and R per tin of pie apples and apple puree, respectively.
Materials quantity requirements and unit costs:
tableProductMaterials,,Pear,SugarPear pie,,Pear puree,,Material cost per unit,,R
Labour requirements per unit and hourly rates
tableProductProcessing,CanningPear pie,Pear puree,Hourly rate,R R
Budgeted factory overheads
Inventories Materials:
tablePear,SugarBeginning inventory units,Ending inventory units,
Work in process: There was no beginning or ending inventory
Finished goods:
tableProductBeginning inventory,Ending inventoryUnits,Unit price RUnitsPie pear,Pear puree,
Budgeted nonmanufacturing overheads
tableOverheadsRSalaries salesSalaries officeSales commission,AdvertisingMotor vehicle expenses salesMiscellaneous officeStationary officeDepreciation office
The budgeted statement of financial position for the previous year end Dec was:
table
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