1. 3 (20 Marks)

3.1 REQUIRED

Use the information provided below to complete the following table using the weighted average

cost method: (6 marks)

	Purchased			Issued			Stock on hand
Date	Quantity	Price	Value	Quantity	Price	Value	Quantity	Price	Value

INFORMATION
The following information was extracted from the records of Linmed Limited, a manufacturing company, for an inventory item called Zax for March 2020:
March	Transaction details
01 07 09 16 22 30	Opening inventory: 2 000 units @ R10 each Invoice received for 48 000 units @ R11 each Transferred 40 000 units to production department Invoice received for 10 000 units at R12 each Transferred 15 000 units to production Invoice received for 5 000 units @ R13 each

3.2 REQUIRED
Calculate the labour cost to company in respect of provided below.	Martin for April 2020 from the information (5 marks)
INFORMATION
The basic wage of Martin for April 2020 was R200 per hour. April 2020 included four weekends. Martins normal working day is eight hours and his normal working week extends from Monday to Friday. There were three public holidays in April, two of which fell on weekdays. Martins employer made the following contributions in respect of Martin for April:
Pension 9% of basic wage Medical aid R800

3.3
Study the ratios provided below which were calculated from a project of Britar Limited over the two-year period and provide suitable comments for each ratio.
	2019	2018
Current ratio	2.83:1	1.88:1	(3 marks)
Return on capital employed	23.22%	14.89%	(2 marks)
Trade receivables period	39.64 days	27.89 days	(2 marks)
Inventory turnover period	35 days	55 days	(2 marks)

Additional information
	Credit terms to debtors are 30 days.
	The interest rate on long-term borrowing is 15% p.a.