The following information relates to Massive Dynamics Ltd.

Balances at 30 June 2021

	R
Raw materials purchases	130 000
Import duties on raw materials	12 000
Selling expenses	90 000
Factory maintenance	30 000
Inventories: 01/07/2020: Raw materials Work-in-progress Finished products	37 000 19 000 56 000
Labour: direct and indirect	320000
Sales	1 001 070
Settlement discount granted	7 200
Salaries: Factory foreman Sales manager	90 000 110 000
Electricity consumed (70% factory)	60 000
Insurance	55 000
Depreciation of machinery	48 000
Security of administrative building	15 000
Drawings	72 000
Other manufacturing overheads	35 000

Additional information:

1. The company returned 12% of the raw materials purchased to the supplier because they were of inferior quality.
2. It is expected that the cost of indirect material used will be equivalent to 10% of the value of raw/direct materials used.
3. Direct labour is calculated at R12 per hour on the number of units manufactured. It takes 12 minutes to manufacture one unit.
4. The factory foreman spends 30% of his time supervising the work of administrative interns who were recently hired. The rest of his time is spent on the factory floor.
5. Included in the R55000 for insurance is an insurance premium of R15000 in respect of insurance on delivery vehicles for a 12-month period commencing on 01/07/2021. Forty percent of the remaining amount is applicable to the factory.
6. The depreciation must be shared between the factory and administrative buildings in a ratio of 3:2.
7. The security expense of the administrative building is usually equivalent to 15% of the security of the factory building.
8. Inventory on hand at 30/06/2021:
   1. Raw materials (direct) R20 000
   2. Work in progress R28 000
   3. Finished goods R78 000
9. The company manufactured 55 000units during the year.

Required:

Prepare the statement of cost of goods manufactured and sold for Inland Producers Ltd for the financial period.

Use the template provided below to compile the Statement of the cost of goods manufactured and sold for Massive Dynamics Ltd. Fill in the blank. Do not type R. Do not leave any spaces in your answer. Do NOT use a negative sign.

Statement of cost of goods manufactured

	R
Raw materials used:
OB: Raw materials
Add: Purchases of raw materials
Purchases returns
Import duties on raw materials
Raw materials available for use
Less: CB of raw materials
Add: Direct labour used
Primary costs
Total manufacturing overheads
Indirect labour
Indirect material
Factory maintenance
Salary of foreman
Electricity
Insurance
Depreciation
Security
Other manufacturing overheads
Total manufacturing cost
Add: OB: WIP
Less: CB of WIP
Total cost of goods manufactured during the year
Add: OB: Finished goods
Value of Finished goods available for sale
Less: CB of Finished goods
Cost of goods manufactured and sold