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1.1 Indicate whether the following statements are TRUE or FALSE - NSC Accounting - Question 1 - 2018 - Paper 1
Question 1
1.1 Indicate whether the following statements are TRUE or FALSE. Write only 'true' or 'false' next to the question numbers (1.1.1 to 1.1.3) in the ANSWER BOOK: 1.1.... show full transcript
Worked Solution & Example Answer:1.1 Indicate whether the following statements are TRUE or FALSE - NSC Accounting - Question 1 - 2018 - Paper 1
Step 1
1.2.2 Production Cost Statement for the year ended 31 July 2018.
Answer
To prepare the Production Cost Statement for Krige Shirts for the year ended 31 July 2018, use the following information:
- Direct Material Cost: R528,300
- Direct Labour Cost: R756,618 (calculated from 1.2.1)
- Factory Overheads: R360,880 (given in the question)
- Total Production Cost = Direct Material Cost + Direct Labour Cost + Factory Overheads
Total Production Cost = R528,300 + R756,618 + R360,880 = R1,645,798.
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Work-in-Progress (WIP):
- WIP at the beginning (1 August 2017): R35,570.
- WIP at the end (31 July 2018): (this needs to be calculated by balancing)
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Cost of Production of Finished Goods:
- Cost of Production = Total Production Cost + Opening WIP - Closing WIP.
Using the WIP values: Cost of Finished Goods = R1,645,798 + R35,570 - Closing WIP (still to calculate, values are given). Ensure to provide final figures after calculating all components.