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KOPO Ltd has the following information that relates to their production activities for the period ending 29 February 2020
Direct Material R202 500
Indirect Material R22 500
Direct Labour R90 000
Production Overheads
· Factory Rent R5 400
· Other variable overheads R12 600
Selling and Administration costs (40% - Fixed costs) R112 500
The production level of 22 000 units was achieved during the period.
Question a: Calculate:
1 The prime cost per unit
2 The conversion costs in total and the conversion cost per unit
3 The total production
4 The total variable production
5 Calculate the Net profit / (Loss) if only 8 800 units were sold at unit price of R275 each.
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