QUESTION 1 (20 MARKS)

1.1. REQUIRED

Use the information provided below to calculate the number of units of Product A that should be produced for January 2024.

INFORMATION

The estimated sales volumes of Product A are 20 000 units and 30 000 units for January 2024 and February 2024 respectively. It is the policy of management to maintain an ending finished goods inventory each month of 40% of the following months budgeted sales.

1.2. REQUIRED

Calculate the expected cost of sales for the year ended 31 December 2023 from the following information.

1.3 REQUIRED

Calculate the expected profit before tax, operating profit, gross profit and sales value for 2023 from the information provided below.

1.4 REQUIRED

Use the information given below to calculate the following ratios for 2022 (expressed to two decimal places):

1.4.1 Inventory turnover

1.4.2 Current ratio

1.4.3 Acid test ratio

INFORMATION The following forecasts were made by Supreme Manufacturers for 2023 in respect of its finished goods: The following reflects the forecasts of Natis Limited for the year 2023: INFORMATION The following figures were obtained from the 2022 financial statements of Berrie Limited