QUESTION FOUR

$(20$ Marks$)$

$4\mathrm{.}1$

REQUIRED

Complete the table below for the transactions provided using the following methods of inventory valuation:

$4\mathrm{.}1\mathrm{.}1$ Weighted average cost

$(7$ marks$)$

$4\mathrm{.}1\mathrm{.}2$ FIFO

$(6$ marks$)$

$\backslash$table$[[,$Purchases,Issues$/$Returns to supplier,Balance,$],[$Date$,$Quantity,Price,Amount,Quantity,Price,Amount,Quantity,Price,Amount$]]$

INFORMATION

The following information was extracted from the records of Planet Limited, a manufacturing company, for an inventory item called Fitness Plus used in Project A for March $2021$:

$\backslash$table$[[$March$,$Transaction details$],[01,$Opening inventory: $6000$ units @ R$40$ each.$],[07,$Invoice received for $144000$ units @ R$44$ each.$],[09,$Transferred $105000$ units to the production department.$],[10,$Returned $15000$ damaged units $($purchased $07$ March$)$ to the supplier.$],[16,$Invoice received for $30000$ units at R$48$ each.$],[22,$Transferred $45000$ units to production.$],[30,$Invoice received for $15000$ units @ R$52$ each.$]]$

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$4\mathrm{.}2$

Popi Limited uses the standard costing system. The standards for Product A are as follows:

Material $,8$ kilograms at R$5\mathrm{.}30$ per kilogram

Labour $,8$ hours at R$100$ per hour

Variable overheads $,$ R$40$ per labour hour

Fixed overheads $,$ R$50000$

Normal production $29000$ units per month

Actual information for the month May $2021$ is:

Material $,182000$ kilograms at R$6\mathrm{.}20$ per kilogram

Labour $198000$ hours at R$73$ per hour

Variable overheads $,$ R$35$ per labour hour

Fixed overheads R$31200$

Production $25000$ units

Required

$4\mathrm{.}2\mathrm{.}1$ Calculate the material quantity variance.

$(2$ marks$)$

$4\mathrm{.}2\mathrm{.}2$ Calculate the variable manufacturing overhead efficiency variance.

$(2$ marks$)$

$4\mathrm{.}2\mathrm{.}3$ Fixed manufacturing overhead volume variance.

$(3$ marks$)$