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QUESTION 1

1. REQUIRED

Use the information provided below to calculate the following:

1. Value of returns to the supplier on 08 may 2019
2. Quantity, unit price and total value of closing inventory on 31 may 2019
3. Total value of the issues to production during may 2019

(Note: a table may be prepared for the transactions but the answers to the questions stated above must appear after the table. where applicable, round off weighted average cost per unit to the nearest cent.

INFORMATION

The following transactions of Edblow Limited, which uses the weighted average cost method of inventory valuation, took place during May 2019 in respect of a component used in a project:

May 01	Inventory of component	180 units @ R20 per unit
05	Issued to production	160 units
06	Purchased from a supplier	480 units @ R22 per unit
08	Returned 100 incorrectly supplied components to the supplier (see 06 May)	?
12	Issued to production	300 units
24	Purchased from supplier	100 units @ R25 per unit
31	Issued to production	80 units

2. REQUIRED

Use the information provided below to calculate the following in respect of Mandy, an employee at Project Z

1. 1. cost to company for the duration of the project
   2. net wage for week 3
2. REQUIRED

INFORMATION

Simbithi Enterprises submitted the following information for the duration of a project in respect of an employee, Mandy. The hours worked are as follows:

	Week 1	Week 2	Week 3	Week 4
Sunday	4	0	4	3
Monday	9	10	9	9
Tuesday	10	9	9	10
Wednesday	9	12	9	9
Thursday	9	9	11	9
Friday	11	9	9	13
Saturday	3	5	4	2

Additional Information

1. The income tax (PAYE) deduction is 20% of the taxable income (i.e Gross salary less Pension deduction).
2. The employees deduction for medical aid amounted to R200 for the week. The employer contributes twice the amount as the employees to the fund.
3. The unemployment insurance fund deduction of each employee amounts to 1% of the gross wage. The employer contributes the same amount as the employees to the fund.
4. Employees are remunerated at R100 per hour during normal working hours.
5. Contributions to the pension fund are calculated on the normal wages and is made u as follows:

Employees contribution 8%

Employers contribution 12%

6. The normal working week is from Monday to Friday for 9 hours per day. Any time worked in addition to this on weekdays and Saturdays is remunerated at double the normal rate
7. Overtime on Sundays is remunerated at double the normal rate