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QUESTION 4 ( 2 0 Marks ) REQUIRED Use the information provided below to prepare the following 4 . 1 Cost Statement for the year
QUESTION
Marks
REQUIRED
Use the information provided below to prepare the following
Cost Statement for the year ended February that shows the cost of goods manufactured and cost of goods sold.
Income Statement for the year ended February
marks
marks
INFORMATION
The following information was supplied by Kimby Ltd for Product Zap which it manulactures for the year ended February :
Materials:
tableOpening inventory, at R per kgPurchases during the year, at R per kgClosing inventory, at R per kgDirect labour:Hours worked during the year,Rate per hour,RManufacturing overheads,Applied on direct labour hours at a rate of R per hour
Work in progress:
tableOpening inventory,RClosing inventory,R
Finished goods:
tableOpening inventory, unitsManufactured unitsSales unitsSelling price per unit,R
The following information is also available:
Actual manufacturing overheads for the year ended February amounted to R
The firstinfirstout FIFO method is used to cost inventories.
Manufacturing overheads underapplied or overapplied must be charged to cost of sales.
The actual cost of the opening inventory of finished goods was R per unit.
Administrative and marketing costs for the year ended February amounted to R
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