QUESTION 3 20 marks Tutaleni Manufacturers produces rackets

QUESTION 3 20 marks Tutaleni Manufacturers produces rackets for tennis and Klcin Mannasc, Sothern Namibia and imports some of its raw via Rictfontein. The following are the genernl ledger bnlances of Tutaleni Manufhcturers: The company is based in from South Africa Stocks at 1 July 2002: Raw materials NS 6 500 7 900 18 430 (ch.et maar..) Work in progress goods Factory wages: 143 000 Indirect Royaltics Electricity and power paid Prepaid electricity and p Delivery vehicles at cost General factory expensesr Factory Rent Maintenance expenses ten? General office expenses y Purchases of raw mntcrials 13 000 01/07/2002 ?.cnn-Ar , 120 000 27 000 24 000 17 540) 565 000 v Provision for unrenlised 4 500 8 306 Additional information 1. At 3O June 2003 stocks were as follows: Raw naterials Work in progress Finished goods 1 980 ?? 10 1100 S00 2. Electricity and power and Maintenance expenses are to be apporti to the factory and 20% to the company\'s offices. 3. At 30 June 2003 a rental hill of NS8OO rémained unpaid and maintenance costs paid in 4. Depreciation is to be provided using straight line method at the following rates: Plant and Machinery 15%, E p; Delivery vehicles 20% pa and Officc cquipmdnt 5% p.a.

Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Opening stock of raw materials 6500 Add purchase of raw materials 124000 Add carriage inwards ( if any ) 130500 Less Returns outwards (of raw materials) 0 130500 Less Goods drawings ( if any ) 0 130500 Less Closing stock of raw materials 4980 Cost of Direct Materials 125520 Add Direct labour 143000 Add Direct expenses (Royalty) 1290 Prime Cost 269810 Add Factory overhead expenses Factory Electricity and Power (13000*80%) 10400 General Factory Expense 27000 Factory insurance Factory rent 24000 Factory maintenance 17540 Factory indirect wages 54600 Factory supervisor’s wages Depreciation on plant & machinery 73500 Depreciation on factory building Depreciation on factory furniture Depreciation on factory motor van Depreciation on other factory fixed assets 207040 476850 Add Opening stock of work in progress 7900 484750 Less Closing stock of work in progress 6950 Cost of production 477800