Sewing industries is a factory located in Divundu that specialises in assembling mini-sewing electrical machines which...

 

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Sewing industries is a factory located in Divundu that specialises in assembling mini-sewing electrical machines which are portable and which can be used in close proximity. The business has provided you with financial data for the year ended 31 January 2022 extracted from their books. Cost of components Wages for workers assembling Factory overheads Administration Selling expenses Distribution charges Sales Page 12 of 19 N$ 600 000 400 000 300 000 336 000 224 000 140 000 2 500 000 FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES The factory produced 10 000 mini-sewing electric machines in the period ended 31 January 2023. The following additional information is given: 1) The following items will occur based on previous years' figure: (i) The price of materials will increase by 20%. (ii) Wages will increase by 10% (iii) Manufacturing expense will increase in proportion to the combined cost materials and wages. 2) Other expenses will remain unchanged. 3) Once the assembly has been complete the sales department expects the mini-sewing electrical machines to be transferred at a margin of 20% on sales from the factory. REQUIRED: 2.1 Prepare a schedule of cost of goods assembled. MARKS 7 Sewing industries is a factory located in Divundu that specialises in assembling mini-sewing electrical machines which are portable and which can be used in close proximity. The business has provided you with financial data for the year ended 31 January 2022 extracted from their books. Cost of components Wages for workers assembling Factory overheads Administration Selling expenses Distribution charges Sales Page 12 of 19 N$ 600 000 400 000 300 000 336 000 224 000 140 000 2 500 000 FACULTY OF COMMERCE, MANAGEMENT AND LAW OLD CURRICULUM MODULES The factory produced 10 000 mini-sewing electric machines in the period ended 31 January 2023. The following additional information is given: 1) The following items will occur based on previous years' figure: (i) The price of materials will increase by 20%. (ii) Wages will increase by 10% (iii) Manufacturing expense will increase in proportion to the combined cost materials and wages. 2) Other expenses will remain unchanged. 3) Once the assembly has been complete the sales department expects the mini-sewing electrical machines to be transferred at a margin of 20% on sales from the factory. REQUIRED: 2.1 Prepare a schedule of cost of goods assembled. MARKS 7

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