QUESTION $2$

$(20$ Marks$)$

$2\mathrm{.}1$

REQUIRED

Use the information provided below to prepare the Income Statement of Disney Enterprises for the month ended $31$ May $2024$ according to the marginal costing method.

$(14$ marks$)$

INFORMATION

The following information was extracted from the accounting records of Disney Enterprises for the months ended $30$ April and $31$ May $2024$:

Information for the month ended $30$ April $2024$

There was no inventory of finished goods on $01$ April $2024.$ The sales and production figures were $5000$ and $6000$ units respectively. Fixed manufacturing and administration costs amounted to R$128800$ and R$86000$ respectively. Variable manufacturing and variable selling costs amounted to R$150$ and R$80$ per unit respectively.

$\backslash$table$[[$Information for the month ended $31$ May $2024,$Units,R$],[,8000,],[$Sales for the month,,$700],[$Selling price per unit,$10000,],[$Production for the month,?,$],[$Finished goods at the beginning of the month,,$180],[$Variable manufacturing costs per unit,,$80],[$Variable selling and administrative costs per unit sold,,$806000],[$Fixed manufacturing overhead costs,,$8600],[$Fixed selling and administrative costs,,$]]$

Additional information

Disney Enterprises uses the FIFO method to value inventories.