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(Solved): REQUIRED Use the information provided below to prepare the following for the year ended 29 February ...



REQUIRED Use the information provided below to prepare the following for the year ended 29 February 2024: 4.1 Cost statement (16 marks) 4.2 Income Statement. (4 marks) INFORMATION The following information was supplied by Carioca Ltd for Product M (which it manufactures) for the year ended 29 February 2024: Inventory on 01 March 2023: Direct materials 150 000 kg at R2.50 per kg Work in progress R300 000 Finished goods 15 000 units Direct materials: Purchased during the year 700 000 kg at R3 per kg Direct labour: Hours worked during the year 300 000 Rate per hour R22 Manufacturing overheads Applied on direct labour hours at a rate of R15 per hour Finished goods: Manufactured 100 000 units Sales 85 000 units Selling price per unit R220 Inventory on 29 February 2024: Direct materials 80 000 kg Work in progress R320 000 Finished goods ? The following information is also available: ? Actual manufacturing overheads amounted to R4 200 000. ? The first-in-first-out (FIFO) method of costing inventories is used. ? Manufacturing overheads under- or over-applied must be charged to cost of sales. ? The actual cost of the opening inventory of finished goods was R130 per unit. ? Administrative and marketing costs for the period amounted to R5 000 000.



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