, QUESTION 1 (38 MARKS)
(a) Actual Statement of Comprehensive Income (Direct Costing) for the
year ended 31 December 2024
Description R R
Sales 291,000
20L (300 units x R850) 255,000
5L (120 units x R300) 36,000
Less: Variable Cost of Sales -156,514
Opening Inventory 0
Variable Manufacturing Cost
166,000
(Working 1)
Less: Closing Inventory
-9,486
(Working 2)
Contribution Margin 134,486
Less: Fixed Costs -75,000
Fixed Manufacturing
-75,000
Overheads (Working 3)
Net Profit 59,486
Workings for Question 1(a):
Working 1: Variable Manufacturing Cost
(a) Actual Statement of Comprehensive Income (Direct Costing) for the
year ended 31 December 2024
Description R R
Sales 291,000
20L (300 units x R850) 255,000
5L (120 units x R300) 36,000
Less: Variable Cost of Sales -156,514
Opening Inventory 0
Variable Manufacturing Cost
166,000
(Working 1)
Less: Closing Inventory
-9,486
(Working 2)
Contribution Margin 134,486
Less: Fixed Costs -75,000
Fixed Manufacturing
-75,000
Overheads (Working 3)
Net Profit 59,486
Workings for Question 1(a):
Working 1: Variable Manufacturing Cost