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 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 $31$ December $2023,$ these estimates are given in the tables below.

Sales

$\backslash$table$[[$Product$,$Western Cape,Eastern Cape$],[$Pear pie,$6500,5500],[$Pear puree,$8500,6500]]$

The selling prices are R $140$ and R $110$ per tin of pie apples and apple puree, respectively.

$2.$ Materials quantity requirements and unit costs:

$\backslash$table$[[$Product$,$Materials,,$],[,,$Pear,Sugar$],[$Pear pie,,$3,1\mathrm{.}25],[$Pear puree,,$4,0\mathrm{.}5],[$Material cost per unit,,$R,$R $2\mathrm{.}50]]$

$3.$Labour requirements per unit and hourly rates

$\backslash$table$[[$Product$,$Processing,Canning$],[$Pear pie,$1\mathrm{.}75,1\mathrm{.}00],[$Pear puree,$1\mathrm{.}50,0\mathrm{.}50],[$Hourly rate,R $15,$R $8]]$

$4.$Budgeted factory overheads

$5.$Inventories Materials:

$\backslash$table$[[,$Pear,Sugar$],[$Beginning inventory units,$9000,2250],[$Ending inventory units,$13000,2750]]$

Work in process: There was no beginning or ending inventory

$6.$Finished goods:

$\backslash$table$[[$Product$,$Beginning inventory,Ending inventory$],[,$Units,Unit price R$,$Units$],[$Pie pear,$450,100,250],[$Pear puree,$400,80,300]]$

$7.$Budgeted non$-$manufacturing overheads

$\backslash$table$[[$Overheads$,$R$],[$Salaries $($sales$),200000],[$Salaries $($office$),145000],[$Sales commission,$125000],[$Advertising$,75000],[$Motor vehicle expenses $($sales$),35000],[$Miscellaneous $($office$),90000],[$Stationary $($office$),15000],[$Depreciation $($office$),7500]]$

$8.$The budgeted statement of financial position for the previous year end $31$ Dec $2022$ was:

$\backslash$table$[[,R,R$