QUESTION 9

Ngwebedla Limiteds manufacturing overhead is 40% of its total conversion costs. If direct labour is R39 000 and direct materials are R27 000, the manufacturing overhead is

1) R97 500.

2) R26 000.

3) R26 400.

4) None of the above-mentioned alternative.

QUESTION 10

Uziri Limited uses a periodic inventory system. On 28 February 2018, the Merchandise Inventory Account of Uziri Limited reflected a balance of R35 600. During February 2018 the company had the total sales and the total purchases amounting to R138 000 and R117 000, respectively. The company applies a 25% mark-up on cost. What is the value of closing inventory on 31 January 2018?

1) R42 200

2) R29 000

3) R34 500

4) None of the above-mentioned alternative

QUESTION 11

The policy of Ingabadi Limited is a gross profit mark-up of 30% on cost. The budgeted gross profit for April 2018 is R7 500. The budgeted cost of sales and sales for April 2018 will be R and R respectively.

1) R25 000 and R32 500

2) R2 250 and R9 750

3) R5 250 and R12 750

4) None of the above-mentioned alternative

QUESTION 12

Inkaba Limited is a retailer that has adopted a perpetual inventory system and a weighted average cost flow assumption. At the beginning of January 2018 there were 1 000 units of merchandise in inventory. The total value of opening inventory was R45 000. During January 2018 the following purchases were made: 8 January: 200 units at R46 each; 15 January: 150 units at R48 each; 22 January: 120 units at R50 each; 29 January: 100 units at R51 each. During January 2018 the following sales took place: 5 January: 300 units; 10 January: 400 units; 16 January: 250 units; 28 January: 170 units; 30 January: 30 units. 16 The cost of sales for January was approximately R (Round off to the nearest two decimals where applicable)

1) R20 055.

2) R72 500.

3) R52 445.

4) None of the above-mentioned alternative

QUESTION 13

Use the information in question 12 above and assume that Inkaba Limited applies a consistent mark-up of 40% on cost. The gross profit for January was R 1) R20 978. 2) R8 022. 3) R29 000. 4) None of the above-mentioned alternative QUESTION 14 Imvuselelo Limited has adopted a perpetual inventory system and a first-in-first-out cost flow assumption. At the beginning of December 2017 there were 800 components of direct materials in inventory. The total value of opening inventory was R3 000. During December 2017 the following purchases were made: 8 December: 200 components at R3,20 each; 15 December: 150 components at R3,50 each; 22 December: 120 components at R3,70 each; 29 December: 100 components at R4,00 each. During December the following components were issued to production: 5 December: 300 components; 10 December: 400 components; 16 December: 250 components; 28 December: 170 components; 31 December: 30 components. The total cost of direct materials issued in December was

1) R844.

2) R4 165.

3) R3 888.

4) None of the above-mentioned alternative