QUESTION $5(20$ Marks$)$

$5\mathrm{.}1$ Study the information provided below and answer the following questions.

INFORMATION

P&S Inc., which operates two job shops$$Shop A and Shop B$$utilises a job costing system for its operations. The work

in process for three jobs as of $30$ September $2024,$ is outlined below:

Job No$.$ Materials, R Direct labour, R Factory Overheads Applied, R

$100132508000(400$ hours$)6400$

$10381005000(250$ hours$)4000$

$10576504750(300$ hours$)3800$

$290001775014200$

Materials used in October $2024$ were as follows:

Materials requisition No$.$ Job No$.$ Materials, R

$441033000$

$451034250$

$461035150$

$471056650$

$481069100$

$491097200$

$35350$

A summary of Labour Hours deployed during October $2024$ is as shown below:

Job No$.$

Number of hours

Shop A Shop B

$1002525$

$1039030$

$1057510$

$10665-$

$1092010$

$27575$

Indirect labour:

Waiting for material $2010$

Machine breakdown $105$

Idle time $56$

Overtime premium $65$

A shop credit slip issued in October indicated that material issued under requisition No$\mathrm{.}54$ was returned back to stores as

being not suitable. In addition, a material transfer note issued in October indicated that materials issued under requisition

No$\mathrm{.}45$ for Job $103$ were redirected to Job $109.$

The hourly rate in Shop A is R$30$ per labour hour, while in Shop B$,$ it is R$20$ per hour. Factory overhead is applied as a

percentage of labour costs, and the overhead rate in October remains consistent with that of September.

Jobs $100,103,$ and $105$ were completed in October.

P&S Inc. has a practice of adding $10\%$ to factory costs to cover administrative and selling overheads and invoices

customers based on a total cost plus $20\%$ basis.

REQUIRED:

Present an analysis of the invoice prices of the completed jobs $($your analysis should show the costs

incurred in September $2024$ as well as the costs incurred in October $2024,$ the factory cost of the completed

jobs, administrative overheads, and the selling prices$).$ All figures should be rounded off to the nearest

Rand.

$(14$ Marks