Question 5 (15 Marks) The following information appeared in the accounting records of Inceptus Ltd a manufacturing entity, at 28 February 2021, the end of the financial year. The company manufactures confectioneries and chocolates for special occasions. Extract from the trial balance as at 28 February 2021: Inventory on hand 1 March 2020 Raw materials Work-in progress Finished products Raw materials purchased (including N$52 326 indirect material) Raw materials issued to production Air freight paid on raw material purchased from South Africa Indirect materials additionally issued to production Insurance expenses (including N$8 415 for office insurance) Depreciation (10:3 ratio applicable for manufacturing equipment and office furniture respectively) Rent expenses (60% of the rent was paid for the factory premises) Wages and salaries paid Water and electricity N$272 646 included for the factory water& electricity) Sales during the year Additional information: 1. Inventory is valued on the FIFO (First-in-First-out) method. 2. Inventory on hand- 28 February 2021: Raw materials Work-in progress Finished products Page 21 of 22 N$ 160 650 229 500 469 200 511 326 ? 163 200 6 426 30 294 39 780 84 150 336 600 321 453 a) Raw material (3 marks) b) Factory overheads (4.5 marks) c) Work-in-progress (3 marks) d) Finished goods inventory (2 marks) e) Allowance for unrealized profits (1.5 marks) f) Manufacturing profit (1 mark) 1 530 000 3. Products are transferred to the sales department at cost plus 15%. 4. 30% of salaries and wages represent indirect labour cost of which N$39 780 was paid to the factory supervisor. The rest of the salaries and wages relate to direct labourers. 5. All indirect materials issued were used in the production process. The raw material account in the general ledger contains both the receipt and issue of direct and indirect material. N$ 387 090 535 041 532 440 FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES 6. At 1 March 2020, the allowance for the unrealized profit in finished products inventory amounted to N$61 200. 7. The remainder of the insurance expense relates to the insurance on the factory equipment. REQUIRED: Prepare the following accounts in the general ledger of Inceptus Ltd for the year ending 28 Febraury 2021:

Question 5 (15 Marks) The following information appeared in the accounting records of inceptus thd a manubacturing entity, at 28 February 2021, the end of the financial year. The company manufactares confectioneries and chocolates for ipecial occasions. Extract frem the trial balance as at 28 February 2021: Additiceal information: 1. ivventory is valued on the FFO (First-in-first-out) method. 2. imentory on hand- 28 February 2021 : 3. Products are transfecred to the sales department at cost plus 15%. 4. 30% of salaries and wages represent indirect labour cost of which N 339780 was paid to the factory supervisor, The rest of the salaries and wages relate to direct labouren. 5. All indirect materials iswued were used in the productien process. The raw muterial account in the general ledger contains both the receipt and isue of direct and indirect materlal. Page 21 of 22 FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES 6. At 1 March 2020, the allowance for the unrealied profit in finished peoducts inventory amounted so N551 200 7. The remainder of the insurance expense relates to the insurance on the factary egapment. REQUiRLD: Prepare the following accounts in the general ledger of Inceptus Hd for the vear ending 23 Febraury 2021 : a) Raw material b) Factery overheads c) Work-in-progress d) Finished goods inventory e) Allowance for unrealized profits (1.5 marks) f) Manufacturing peofit (3 marks) (4.5 marks) (3 marks) (2 marks) (1 mark) Question 5 (15 Marks) The following information appeared in the accounting records of inceptus thd a manubacturing entity, at 28 February 2021, the end of the financial year. The company manufactares confectioneries and chocolates for ipecial occasions. Extract frem the trial balance as at 28 February 2021: Additiceal information: 1. ivventory is valued on the FFO (First-in-first-out) method. 2. imentory on hand- 28 February 2021 : 3. Products are transfecred to the sales department at cost plus 15%. 4. 30% of salaries and wages represent indirect labour cost of which N 339780 was paid to the factory supervisor, The rest of the salaries and wages relate to direct labouren. 5. All indirect materials iswued were used in the productien process. The raw muterial account in the general ledger contains both the receipt and isue of direct and indirect materlal. Page 21 of 22 FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES 6. At 1 March 2020, the allowance for the unrealied profit in finished peoducts inventory amounted so N551 200 7. The remainder of the insurance expense relates to the insurance on the factary egapment. REQUiRLD: Prepare the following accounts in the general ledger of Inceptus Hd for the vear ending 23 Febraury 2021 : a) Raw material b) Factery overheads c) Work-in-progress d) Finished goods inventory e) Allowance for unrealized profits (1.5 marks) f) Manufacturing peofit (3 marks) (4.5 marks) (3 marks) (2 marks) (1 mark)