Tricia Manufactures

The following is an extract from the accounting records of Tricia Manufacturers, a sole trader, for the

year ended 28 February 2022:

1 Mar 2021 28 Feb 2022

Inventory balances

Direct materials 90 000 40 000

Work-in-progress 30 000 44 900

Finished products 60 000 85 000

Transactions for the year ended 28 February 2022:

Direct materials purchased on credit 55 000

Import duty paid on purchases of direct materials 1 500

Returns of direct materials 5 500

Direct and indirect labour cost 15 000

Water and electricity 2 500

Repairs to factory machinery 4 000

Depreciation (factory machinery) 20 000

Credit sales 150 000

Salaries and wages (administrative personnel) 18 000

Cost of sales 120 000

Additional information:

1. The total of direct materials purchased on credit includes indirect materials amounting to R10

000, all of which was issued to the manufacturing process.

2. The factory managers remuneration amounts to 30% of the total labour cost and represents the

only indirect labour cost

3. It is estimated that 75% of the water and electricity is used in the factory.

4. Finished products are transferred to the sales department at cost plus 20%.

5. Tricia Manufacturers uses a perpetual inventory system.

You are required to:

Prepare the manufacturing cost statement of Tricia Manufacturers for the year ended 28

February 2022