the raw materials general ledger is the represenation of the information in the other screenshot.. what are the errors and omissions according to ias2 made in the general ledger shown below based on tge informatoon and ias2
1. General details Wells Gray requested for a specific grain of wood called 'Silver Grain Moranti' to be cut into wooden boards and installed across an open-plan office space to accommodate staft members. To accommodate this request, Panda Flooring converted existing bamboo boards using dyes and staining techniques to meet fooring specifications requested by Wells Grey. Panda Flooring applied a mark-up of 25% on cost for this project. The raw materials general ledger account includes information related to the bamboo boards and paint (see point 3.4). 4 2. Actual level of production Given the nature of the project, Panda Flooring only manufactured enough boards to meet the project demands. There was no work-in-progress or finished goods at 31 March 2023. 3. Details on 'Silver Grain Moranti' 3.1 Opening balance as at 1 April 2022 The opening balance of raw materials - Bamboo boards comprise the following- - Batch 1: 43m2 of bamboo board at R2 138 per m2 - Batch 2: 45m2 of bamboo board purchased at R2 195 per m2 As it relates to batch 2 , a 3% settiement discount was offered to Panda Flooring if payment is made within 10 days of the invoice date. Panda Flooring has a 30 day payment cycle from invoice date to minimise significant cash-flow movements and has not deviated from this practice. 3. 2 Purchases On 23 February 2023, an additional 15m2 bamboo board was purchased at a cost of R2 200 per m2. This bamboo is imported from China and non-refundable import duties is calculated at 5% of the cost per square-meter. Payment was made on 22 March 2023. 3.3 Stock-count - raw materials A stock-count conducted at the end of FY2023 identified 30m2 of wooden boards damaged by a leak in the factory. These boards were not painted. The boards can be repaired at a cost of R915 per board. 3.4 Siver Grain Moranti Wood - painting of bamboo boards To meet the specifications of the Wels Gray project, Panda Flooring purchased and paid for speciality paint to stain the bamboo flooring boards. The cost of the paint was R17 500 for a 20 litre paint drum and 12,75 litres was used to stain the boards. It is highly unlkely that the paint could be used for another project or sold to another company. The high viscosity of the speciality paint resulted in abnormal wastage in FY2023 amounting to R1000. At the end of FY2023, 5 titres of paint remained on-hand. Panda Flooring (Pty) Ltd Appendix A - information from Ms. Swashbuckle Raw materials general ledger account: Wells Gray project 43 R2 138= R91 934 (2) 45R2195=R9877597%=R95812 (3) 15R2200=R33000 (4) R17 50012,75/20= R11 156
