part a and part b please...

QUESTION 3 35 Marks Part a Bravo Ltd manufactures components for the retail industry. The inventory is currently valued at cost. The cost structure of the component is as follows: Cost/Unit Selling Price /Unit NS 1 050 Production process 1" stage Conversion costs 200 stage Finished product NS 1 000 500 1 500 1 700 The selling costs are N$10 per unit and Bravo has 100 000 units at the 1st stage of production and 200 000 units of finished products. Shortly after year end a competitor released a new model and this has resulted in Bravo having to reduce its Selling price to N$1 450 for finished products and N$950 for the 1" stage of production. Required: Show the journal entries for inventory write down and 3.1 calculate the value of closing inventory to be included in Bravo's financial statements at reporting date. 10 Part b Refineries Ltd manufactures sugar, both brown sugar and white sugar. The basic ingredient for both of the sugar products is sugar cane, which costs N$48 per kg. A machine is used to extract the sugar from the sugar cane. The depreciation on the machine amounts to N$1 200 per day, while the machine operator is paid N$200 per day and other conversion costs amount to $10 per kg. The machine can process 10 kg of sugar cane in one day. Ikg of sugar cane is used to produce 10 packets and 8 packets of 1kg brown and white sugar respectively. The selling price per packet amounts to $8 for brown and $12 for white sugar. 10 kgs of sugarcane is required to produce 100 packets of brown sugar and 80 packets of white sugar. During the refinery process all visible molasses is removed from the raw sugarcane, after which it is sold to a cattle feeds' manufacturer, at a price of $5 per kg. 10kgs of raw sugarcane usually have only 0,5kgs of molasses. Page 20 of 21 Required: 3.1 Calculate the cost of both brown and white sugar per packet. 25