MAC3701 ASSIGNMENT 2 - SEMESTER 1 OF 2018 Solutions

MAC3701 ASSIGNMENT 2 – SEMESTER 1 OF
2018
QUESTION 1
(a) GZ DIVISION (GZD)

BUDGETED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS ENDED
31 JANUARY 2018

R
Revenue (82 110 ∗ 422.40) 34 683 264
Cost of sales 28 957 320
Production Cost 28 902 720
15 000 26 806 500
Direct raw material: surfactants ( 1 000 ∗ 18.50 ∗ 96 600)
3 000 3 622 500
: sodium (1 000 ∗ 12.50 ∗ 96 600)
2 000 1 255 800
: colourant (1 000 ∗ 6.50 ∗ 96 600)
Direct Labour (0.5 ∗ 12 ∗ 96 600) 579 600
Variable manufacturing overheads (5 ∗ 96 600) 483 000
Open – plastic container (5 ∗ 96 600) 483 000
Plastic container lid (1.50 ∗ 96 600) 144 900
Fixed Manufacturing Overheads (6.50 ∗ 96 600) 627 900
Closing Inventory (14 490 ∗ 352) (5 100 480)
1 365 000 54 600
Under – absorption ( 2 − 627 900)

Gross Profit 5 725 944
Expenses (3 301 811)
4 328 440
Budgeted Variable Selling Costs (5 ∗ 5 ∗ 82 110)
1 82 110
Budgeted Fixed Selling Costs (5 ∗ 5 ∗ 82 110)
(12 950 000 −10 175 000) 1 387 500
Depreciation ( )
2
100 153 761
Rent Expense [27 000 + (27 000 ∗ ∗ 5)]
106.5
2 700 000 1 350 000
Other Operating expenses ( )
2

Net Profit 2 424 133


1. 6
Budgeted Production = 210 000 ∗ 92% ∗ = 96 600
12
Budgeted Units Sold = (96 600 ∗ 85% = 82 110
Closing inventory = 96 600 − 82 110 = 14 490