Rice Products Pty. Ltd. is a local firm that produces two moulded plastic products: kickboards and pool buoys. The products are manufactured in a two step process and each process is treated as a separate cost centre. In the first process, the mixing department, a special resin is combined with a hardener. Moulding occurs in the second process where the output from the mixing department is poured into special shaped moulds. Due to the nature of the chemical compounds contained in the resin and hardener, the manufacturing process occurs very rapidly. Production is therefore scheduled so that no work-in-process inventory is held at the end of each day.

The following information has been extracted from the accounting records of Rice Products or obtained through discussions with the senior management team:

1. Balance Sheet (Statement of Financial Position) as at 30 June 2020:

Cash S 9,000 Trade Creditors S 8,520 Accounts Receivable 85,210 Shareholders' Equity 150,000 Raw Materials Inventory 8,408 Retained Earnings 80,548 Finished Goods Inventory 11,450 (Kickboard $8,496; Pool buoy $2,954) Plant and Equipment (Net) 125,000 TOTAL ASSETS $ 239,068 TOTAL LIABILITY 8; EQUITY $ 239,063 \fFACTORS OF KICKBOARDS POOL BUOYS PRODUCTION Materials: Resin 2 litres @$0.45/litre 3 litres @$0.45/litre Hardener 5 litres @$0.70/litre 2 litres @$0.70/litre Labour: Mixing Department 18 minutes @$20/hour 12 minutes @$20/hour Moulding Department 12 minutes @$30/hour 12 minutes @$30/hour Factory Overhead: Mixing Department $7.00/direct labour hour $7.00/direct labour hour Moulding Department $11.00/direct labour hour $11.00/direct labour hourMATERIAL/PRODUCT LITRE/UNIT Resin 5040 litres Hardener 8772 litres Kickboards 720 units Pool Buoys 330 unitsTriads Creditors Accarts Pike Shirhodia's Equity PM Hirdine Inurtary FG Kickboard Inantay 720 FG Pad Bauy Inventory 330 Pirt & Equamat 32908 2108 May June July Aug Sept Nav SP $ *Change Kidbairds Pod Bays Kickbords Pod Baurya Manufacturing Costs Com Kickboard $ Pool Bouya Labour Mouking Factory OH Dipn Mauling Cost Per Unit Inventory Policy (% of med month) Fibhad Good Selling & Administration Fbond (per month) Promotion Depreciation (par marth) Bakin Commbokon Collection Policy Month of Bala July Aug Month after Saks Second month after Bake Chicant Payment Month of Purchris Month after Purhiring Finano Margin d Safely Intent on loin (pir marth) OnFana no China Price no no MOS no no Promotion no