Question 2 [10 marks; 18 minutes] Kanti Pty is a manufacturing firm that uses job-order costing....

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Question 2 [10 marks; 18 minutes] Kanti Pty is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Ending Balance Balance Raw materials R16,000 R31,000 Work in process 24,800 7,500 Finished goods 50,000 65,000 Page 3 of 5 The following transactions were recorded for the year: Raw materials were purchased, R210,000. Raw materials were requisitioned for use in production, R195,000 (R160,000 direct and R35,000 indirect). The following employee costs were incurred: direct labour, R270,000; indirect labour, R88,000; and administrative salaries, R160,000. Selling costs, R147,000. Factory utility costs, R12,400. Depreciation for the year was R127,000 of which R120,000 is related to factory operations and R7,000 is related to selling and administrative activities. The company applies overhead to jobs using a predetermined overhead rate based on labour-hours. At the beginning of the year, the company estimated that it would work 21,000 labour-hours and incur R189,000 in manufacturing overhead costs. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 26,000 labour-hours. Sales for the year totaled to R1,253,000. QUESTION 2 REQUIRED 1. Calculate the cost of goods manufactured in good form. Sub- Total Total 10 10 Total Marks 10 Question 2 [10 marks; 18 minutes] Kanti Pty is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Ending Balance Balance Raw materials R16,000 R31,000 Work in process 24,800 7,500 Finished goods 50,000 65,000 Page 3 of 5 The following transactions were recorded for the year: Raw materials were purchased, R210,000. Raw materials were requisitioned for use in production, R195,000 (R160,000 direct and R35,000 indirect). The following employee costs were incurred: direct labour, R270,000; indirect labour, R88,000; and administrative salaries, R160,000. Selling costs, R147,000. Factory utility costs, R12,400. Depreciation for the year was R127,000 of which R120,000 is related to factory operations and R7,000 is related to selling and administrative activities. The company applies overhead to jobs using a predetermined overhead rate based on labour-hours. At the beginning of the year, the company estimated that it would work 21,000 labour-hours and incur R189,000 in manufacturing overhead costs. Manufacturing overhead was applied to jobs. The actual level of activity for the year was 26,000 labour-hours. Sales for the year totaled to R1,253,000. QUESTION 2 REQUIRED 1. Calculate the cost of goods manufactured in good form. Sub- Total Total 10 10 Total Marks 10