2.1.1 Calculate the following for the Production Cost Statement: - Direct material cost - Direct labour cost - Factory overhead cost 2.1.2 Complete the Abridged Statement of Comprehensive Income (Income Statement) for the year ended 31 March 2022 - NSC Accounting - Question 2 - 2022 - Paper 2

To determine the direct labour cost:

1. The number of factory machinists is 40, with a basic monthly salary of R17,500, leading to, for machinists:

   $$ext{Total Salary (Machinists)} = 40 \times R17,500 \times 12 = R8,400,000$$

2. The bonus paid to the factory machinists is R84,000.

3. Thus, total direct labour cost is:

   $$ext{Direct Labour Cost} = R8,400,000 + R84,000 = R8,484,000$$

To compute factory overhead cost:

1. Gather total overheads:

   $$ext{Total Overheads} = R941,500 + R35,700 + R12,060 = R1,009,260$$

2. The comprehensive calculation will yield:

   $$ext{Factory Overhead Cost} = R1,327,260$$

For the comprehension statement:

1. Sales: R18,104,000
2. Cost of Sales (COS): R11,105,000
3. Gross Profit: R6,999,000
4. Operating Expenses:
   • Selling and distribution cost: R1,052,400
   • Administration costs: R612,000
   • Net profit for the year = Gross Profit - Operating Expenses = R5,118,000