? QUESTION $2(15$ ?marks$)$

Horns $($Pty$)$ ?Limited $($Horns$)$ ?manufactures and sells quality leather purses. Horns

uses the absorption costing method. You were provided with the following

information for the financial year ending $31$ ?December $2024$ ?of Horns:

Budgeted information:

$$ ?Production overheads: R$120000$

$$ ?Production units: $20000$

Actual information

Opening inventory at R$10\mathrm{.}50$ ?per unit R$21000$

Production units $18000$

Sales units $18500$

Selling price per unit R$30$

Variable production cost per unit R$12$

Selling and administrative cost per unit R$3$

Fixed production cost R$135000$

Fixed selling and administrative cost R$70000$

REQUIRED:

Calculate the actual profit for the financial year ending $31$ ?December $2024,$ ?assuming

that Horns uses the weighted average method for inventory valuation purposes.

?$(15$ ?marks$)$

Round your answers to two decimal places where required and show all your workings

clearly