Question 13 (20 Marks, 36 Minutes) Normal 2018 Sophie and Eloy have just attained their qualifications from the University of Namibia in 2017 They have majored in BACC and BBA, respectively. Given the current state of the country's economy, they have been looking for employment opportunities but without success. The two are now contemplating to start up their own manufacturing company (CC). If materialises, their company I to be granted an exclusive right of being a sole manufacturer and supplier of school uniforms for all secondary schools around Windhoek. Sophie's uncle, is a well-known business tycoon who has got business interests in various sectors such as mining, agriculture, manufacturing and construction. Being an inborn entrepreneur, Sophie's uncle was happy to learn that the two graduates are contemplating to start up their own business instead of being job seekers. As a result, he assured them through Sophie that he would do everything possible to support them both financially and materially. That is the reason why he requested them to provide him with a detailed (forecast): PART A: Statement of Cost of Goods to be manufactured, and PART B: Statement of profit/(loss) up to Gross Profit only. Consider the following assumptions for the month of June 2018: N$ 10 000 1. Capital contribution 2. Expected monthly production (prototype) 1 000 3. Expected monthly sales 90% of monthly production -15% of capital contribution 5. Expected raw material consumption 80% of total purchase 10% of capital contribution 7. Indirect material 1/4 of cost of raw material 8. Indirect labour 3/4 of direct labour cost Rental fee -10% of capital of capital (60%-factory and 40%office) 10 Selling price per unit Gross profit margin of 25% 11. Assume that no other information is required in order answer both PARTS A and B. 4. Cost of raw material 6. Direct cost of labour 9 REQUIRED: Assist Sophie and Eloy in preparing the following as per Sophie uncle's MARKS request: 13.1. Statement of Cost of Goods to be manufactured - clearly showing COGM. 9 13.2. Statement of profit(loss) up to Gross Profit only. 11 TOTAL MARKS FOR QUESTION 13 20