Reference no: EM132598071

The following information has been provided to you by ABC manufacturers , a manufacturer of a range of clothing items . The information is for the financial year ended 28 February 2013

Inventory:

Materials

28 February 2012 R25300

01 March 2013 R19800

Work in process

28 February 2012 R5000

01 March 2013 R6000

finished goods

28 February 2012 R7000

01 March 2013 R8000

Sales R400 000

Direct material purchased R 49500

Indirect material purchased R 21400

Wages R 71 500

Delivery cost of direct material R 6050

Depreciation of factory machinery R13500

Depreciation on office equipment R9900

Material returned to supplier (80% direct) R 6600

General expenses:

Rent R33000

Water and electricity (30% is for water) R 28600

Rates and taxes R 16 500

Sales expenses R 13 200

Commission on sales 1000

Additional information:

1. 38.5% of the material inventories were for direct material

2. During the year , factory utilized 5599 litres of water and 38500 kilowatts of electricity while the office building utilized 2750 litres and 11000 kilowatts. The factory occupies 77% of the total property space.

3. 60% of the wage expenses was for direct employees , 11% was for cleaners ( the factory has 6 cleaners and the office building has 3 . All cleaners are paid the same wage ), the remaining was for office wages.

4. Value of under absorption amounting to R2000 is charged against cost of goods sold in the manufacturing statement.

Required:

Question 1: Calculate the cost of goods manufactured