Timely (Pty) Ltd is a sports watch manufacturer and distributor. Timely (Pty) Ltd distributes new sports watches as well as second-hand sports watches that customers trade in for later versions. The company has a 30 June year-end.

Below is an extract from the trial balance of Timely (Pty) Ltd for the 30 June 2023 year- end which the entity is in the process of finalising.

	R
Sales	5 725 000
Purchases raw materials (components)	875 000
Purchases second-hand watches	277 347
Labour costs hourly paid employees
Factory staff	210 000
Administration and selling staff	180 000
Salaries and commissions
Factory staff	110 000
Administrative and sales staff	240 000
Depreciation plant and machinery	40 000
Depreciation office equipment	5 655
Interest paid	9 817
Interest received	10 487
Dividends received	5 000
Other expenses	87 900
Retained earnings as at 1 July 2022	230 000

Normal capacity at the factory of Timely (Pty) Ltd is 12 000 sports watches per year. Recent power outages have negatively affected the production at Timely (Pty) Ltds factory, reducing the actual production for the year to 85% of normal production levels. Sports watches manufactured:

	2022	2023
	R	R
Raw materials (cost price)	12 000	21 600
Work in progress (cost price)	65 000	Note 1

Note 1 Work in progress of Timely (Pty) Ltd has not been finalised for the June 2023 financial year-end. The production records indicate that 30% of the current years allocated production expenditure and materials used relate to sports watches that were still under production at the year-end. The demand for the latest watches is very high, and all manufactured watches are sold immediately once produced. Therefore, there are no manufactured watches finished goods on hand at year end. There were no raw material spillages during the year.

Timely (Pty) Ltd values raw materials, work in progress and finished goods on a first- in-out basis (FIFO).

Sports watches distributed to outlets for resale: New and second-hand sports watches are distributed to outlets for resale. The information below relates to watches that have been traded in and are now distributed to outlets for resale:

Watch serial number	Date purchased	Purchase price R	Date of sale	Estimated selling price 30 June 2023 R
SW001	31 May 2021	11 000		9 500
SW002	15 March 2021	6 900	13 May 2022	8 500
SW003	28 June 2021	10 000		12 000
SW004	9 September 2022	13 000	13 October 2023	15 000
SW005	22 February 2023	14 000		16 500

Sports watches on hand at 1 July 2022 were SW001, SW002 and SW003. There are no manufactured watches included in opening inventory. The net realisable value for opening inventory has remained unchanged from the previous year-end.

Sales staff earn a commission of 8% of the selling price.

REQUIRED: Prepare the general journal entries required in the records of Timely (Pty) Ltd to recognise the cost of sales for the year ended 30 June 2023. Journal dates and nar- rations are not required.