QUESTION $4$

$(25$ Marks$)$

Jack Ltd sells portable waterproof speakers to hypermarkets. You have been asked to assist in the preparation of the annual financial statements for the year ended $31$ March $2024.$ The following statement of comprehensive income has been prepared by the bookkeeper,

$\backslash$table$[[,$R$],[$Retained income $31$ March $2024,80476],[$Sales$,236000],[$Purchases$,93338],[$Import duty,$14160],[$Salaries$,29736],[$Rent$,19234],[$Interest$,3540],[$General expenses,$26786],[$Profit$,35990]]$

On investigation of the above statement of comprehensive income, you discover the following;

The bookkeeper had not journalized the reversing entry for the accrual at $31$ March $2024$ of rent paid in advance of R$3540$ and sales received in advance of R$7870.$ Both these amounts are related to April $2023.$ All other reversing entries have been processed.

Interest represents payments of interest for the year on a loan of R$35400.$ The interest rate is $15\%$ per annum, and there have been no repayments during the year.

The inventory per the statement of financial position at $31$ March $2023$ was R$7420,$ which represented $70$ speakers valued at $R106.$

There were $80$ speakers on hand at $31$ March $2024.$ Of these, $8$ were considered worthless. Jack Solutions accounts for inventory on the periodic using the FIFO basis of allocating costs.

The purchases and purchase returns records for the year were as follows:

$\backslash$table$[[$Purchases$,],[$July$,330$ units at R$100$ each$],[$October$,375$ units at R$110$ each$],[$January$,118$ units at R $120$ each$],[$March$,25$ units at R$130$ each $($after trade discount$)],[,],[$Purchase returns,$],[$July$,47$ units at R$100$ each$],[$March$,10$ units at R$130$ each$]]$

A Chinese supplier entered the market in late March and was selling its speakers at R$177$ each. The normal selling price of Jack was R$236.$

In March $2024,$ a carton of $10$ speakers purchased in March was stolen. Jack is not insured for losses of this nature.

No taxation or dividends are payable for the year.

Required;

a$)$ Record the journal entries to finalise the books for the year ended $31$ March $2024$ for items $1,2,6$ and $7$ only. Narrations are not required. If no entry is required, state this fact and give a reason for your answer.

$(10$ marks$)$

b$)$ Prepare the statement of comprehensive income for the year ended $31$ March $2024,$ taking $(1-8)$ above into account.

$(15$ marks$)$

HICMA$1181-$Jan$-$Jun$2024-$FA$1-$CTM$-$V$\mathrm{.}3-29012024$

Question $1$

$[20$ Marks$]$

You are the Cost Accountant of Prestige Construction $($Pty$)$ Ltd$,$ and your company manufactures four products $($roof tiles, floor tiles, cement and bricks$)$ using the same machinery and processes. You compiled the following information relating to the existing production period:

$\backslash$table$[[,,$Material cost per unit,Direct labour cost per unit,,Labour cost per unit$],[$Product$,$Volume,$R,R,$Machine time per unit,$],[$Roof Tiles,$650,6\mathrm{.}00,0\mathrm{.}60,0\mathrm{.}30,3\mathrm{.}60],[$Floor Tiles,$6050,6\mathrm{.}00,0\mathrm{.}60,0\mathrm{.}30,3\mathrm{.}60],[$Cement$,770,19\mathrm{.}00,2\mathrm{.}40,1\mathrm{.}20,14\mathrm{.}40],[$Bricks$,8450,20\mathrm{.}00,1\mathrm{.}80,1\mathrm{.}80,10\mathrm{.}80]]$

Total production overheads are as follows:

$\backslash$table$[[,R$