Blades (Pty) Ltd (“Blades”) is a manufacturer that specialises in the manufacturing of Saws. Blades uses an absorption costing system and is currently planning the entity’s budgeted activity for the following financial year ending 2025. The following information pertains to the financial year ended 31 December 2024. Budget details for the financial year ended 2024 Blades only manufactures a single product, Saws, which it plans […]
Posted: March 11, 2024
QUESTION 1 (32 marks) MoneyMakers (Pty) Ltd, manufactures Product D which passes through two processes, namely process X and process Y. Material is introduced at the start of process X and additional material is added to process Y when the process is 80% complete. Conversion costs are applied uniformly throughout both processes. The closing work in progress (“WIP”) is estimated to be 60% for both […]
Posted: October 19, 2023
QUESTION ONE (10 Marks) The following transactions of Berain Manufacturers, that uses the perpetual inventory system, took place during February 2024 in respect of a part used in production: Feb 01 Stock on hand 600 units @ R34 per unit 08 Issued to production 420 units 15 Purchased from supplier 1800 units @ R35.50 per unit 16 Issued to production 700 units 17 […]
Posted: September 12, 2023
Question 1 1.1: Management accountants advocate that marginal costing is superior to absorption costing when assisting management with decision-making. In light of the above statement, discuss in detail the advantages of marginal costing as the basis of management reporting. 1.2 Justify whether management accounting is required in non-profit organisations. Question 2 Mo Salah is employed by Liverpool Limited. The normal working week is 45 hours. […]
Posted: April 12, 2023
Classic Sanitary Wares (CSW) manufactures and sells bathroom accessories in Adelaide. CSW is facing the following market challenges and opportunities: • CSW needs to develop some preliminary cost estimates for launching a new product – ‘Daffodil Basin’. • CSW is experiencing increasing pressures from new competitors who are importing sanitary wares from China and selling them at cheaper prices in the Australian markets. • CSW […]
Posted: April 7, 2023
QUESTION 1 (45 marks) Custom Couches (Pty) Ltd uses a job costing system to manufacture various types of couches for their customers. Manufacturing overheads are allocated to jobs on the basis of a predetermined rate i.e., it is based on direct labour hours. The budgeted manufacturing overheads for the period (November 2022) were R108 000 and the anticipated direct labour hours for the same period […]
Posted: March 28, 2023
Calculate Anne’s remuneration for 15 April 2022. The normal wage of Anne is R200 per hour and her normal working day comprises 9 hours. The standard production time for each employee is 10 minutes per unit. On 15 April 2022, Anne’s production was 60 units. Using the Halsey bonus system, a bonus of 50% of the time saved is given to employees. 1.2 REQUIRED Calculate the […]
Posted: November 29, 2022
QUESTION ONE Information: November TRANSACTIONS NUMBER OF UNITS AND COST 01 Opening inventory 1260 units @ R11 per unit 08 Purchased from supplier 3150 units @ R12 12 Issued to production 2310 units 19 Returned to supplier 525 units (purchased on 08 November) 22 Purchased from supplier 1575 units @ R13 28 Issued to production 2625 units 1.1 Use the transactions of Stark Industries to determine […]
Posted: October 5, 2022
