You are the cost accountant for RARE (Pty) Ltd. RARE manufactures wooden desks and chairs. You need to determine the total product cost and period cost for the current month. The following is an extract of the transactions for the month.

1. Purchase wood to be used in the manufacturing of tables and chairs. Each table needs 2 m and a chair needs 1 m wood. Total units manufactured is 500 tables and 1,000 chairs. Wood cost R50 per m. There is no opening nor closing inventory.

2. Pay Delivery Services CC R1 250 for the delivery of the wood.

3. Pay the wage bill for the month. There are two manufacturing division, table division and chairs division. The table division has two employees paid R80 per hour, and the chair division has four employees paid R75 per hour. The company work 40 hours per week. There were four weeks in this month. All labour is to be considered variable.

4. Pay the telephone bill to the amount of R4 000.

5. Pay the security at the factory gate R4 500 and the security guard at the office entrance R4 500 per month.

6. Pay insurance to the amount of R17 000. Insurance gets allocated based on floorspace. The factory has 1 500 m and the office 500 m.

7. Pay consumables used in the manufacturing process to the amount of R15 000.

8. Pay the storeman a salary of R5 000.

9. Pay photocopier charges of R2 500.

10. Pay the distribution company R3 500 for the delivery of all the tables and chairs manufactured.

Required: Calculate the detailed product cost and period cost. Use the following outlay and allocate all the cost according to their type. Remember to total the columns.

Number	Product cost(R)			Period Cost(R)
	Material	Labour	Overheads	selling & distribution	Administration