4.1

KOMPUSTAT LTD
COST STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2023
	Cost	Work-in-process	Finished goods
	R	R	R
Opening inventory:
finished goods (9 000 x 108)			972000
work in process		120 000
Materials used	.........
opening inventory	120 000
materials purchases	583 200
Less Closing inventory	( )
Direct labour (80 000 x 12)	960 000
Applied overheads (80 000 x 6)	480 000
Production costs		........
		.........
Less: Closing inventory		(96 000)
Cost of goods manufactured			......
Available for sale (9000+20000 =29 000)
Less: Closing inventory (29000- 25000 =4000 * ......			()
Cost of sales
Add: Under-applied overheads (540 000 - 480 000)			60 000
Cost of sales

Workings: Closing inventory of finished goods

/ 20 000 =

(16 marks)

4.2

KOMPUSTAT LTD
INCOME STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2023
	R
Sales (25 000x156)	3900000
Less Cost of sales (see above)	()
Gross profit
Less : selling and admin cost (25 000 x 36)	(900 000)
Net profit

(4 marks)

4.1 Prepare the Cost Statement for the year ended 28 February 2023 that shows the cost of goods manufactured and cost of sales. (16 marks) 4.2 Prepare the Income Statement for the year ended 28 February 2023. (4 marks) INFORMATION - The first-in-first-out (FIFO) method of costing inventories is used. - Manufacturing overheads under- or over-applied must be charged to cost of sales