Xtreme manufacturers produces fast moving consumer goods for those who reside around suburbs of Rundu town. On 30 April 2019 unfortunately there was a fire outbreak which destroyed most of the costing records. The following information was however salvaged:

Direct labour cost 700 000

Raw materials 1 055 000

Manufacturing overheads 525 000

Raw material returns 5 000

Other relevant information:

1. Xtreme manufacturers normally transfers 80% of the raw material to production
2. Work-in-progress completed was 70%
3. Finished goods are transferred to sales department at a margin of 33%.

REQUIRED:		MARKS
1.3	Compute the value of closing inventory for; Raw materials and Work-in-progress	4
1.4	Calculate total direct costs	2
1.5	Profit on goods transferred to sales department	2
TOTAL MARKS		8