Red Wine Circus

The following is an extract from the accounting records of Red Wine Circus, a sole trader.

$1$ Mar $201828$ Feb $2019$

Inventory balances

Direct materials

$80000$

$60000$

Work$-$in$-$progress

$35000$

$34900$

Finished products

$50000$

$75000$

Transactions for the year ended $28$ February $2019$:

Direct materials purchased on credit

$50000$

Carriage on materials

$11500$

Returns of direct materials

$15500$

Direct labour cost

$63000$

Rates and electricity

$7500$

Repairs to factory Plant

$10000$

Depreciation $($factory Plant$)$

$20000$

Credit sales

$150000$

Cost of sales

$120000$

Salaries and wages $($administrative personnel$)$

$18000$

Additional information

$1.$

The total of direct materials purchased on credit includes indirect materials amounting to R$17000,$ all of which were issued to the manufacturing process.

$2.$

The factory manager$$s remuneration is calculated as $40\%$ of the direct labour cost.

$3.$

It is estimated that $90\%$ of the rates and electricity are used in the factory.

$4.$

A constant manufacturing profit of $12\%$ is added to completed products transferred to the marketing department.

$5.$

Red Wine Circus uses a perpetual inventory system.

Source: Waka, L$.2023$

Page $10$ of $14$

Required

Prepare the manufacturing cost statement of Red Wine Circus for the year ended $28$ February $2019.(20$