REQUIRED Use the information provided below to calculate the expected production cost for November 2023. INFORMATION Malvern Limited manufactures Product Mac. An estimate of the number of units to be sold during November and December 2023 is given below: November 3 000 December 3 800 It is anticipated that: 1. There will be no work-in-process at the end of any month. 2. Finished units equal to 40% of the expected sales of the following month will be in inventory at the end of each month The budgeted production and production costs for the year ending 31 December 2023 are as follows: 36 000 units Production Direct materials cost per unit R50 Direct labour cost per unit Other manufacturing costs R30 R216 000
REQUIRED Use the information provided below to calculate the expected production cost for November 2023. INFORMATION Malvern Limited manufactures Product Mac. An estimate of the number of units to be sold during November and December 2023 is given below: November 3 000 December 3 800 It is anticipated that: 1. There will be no work-in-process at the end of any month. 2. Finished units equal to 40% of the expected sales of the following month will be in inventory at the end of each month The budgeted production and production costs for the year ending 31 December 2023 are as follows: 36 000 units Production Direct materials cost per unit R50 Direct labour cost per unit Other manufacturing costs R30 R216 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:REQUIRED
Use the information provided below to calculate the expected production cost for November 2023.
INFORMATION
Malvern Limited manufactures Product Mac. An estimate of the number of units to be sold during November and December 2023 is
given below:
November 3 000
December 3 800
It is anticipated that:
1. There will be no work-in-process at the end of any month.
2. Finished units equal to 40% of the expected sales of the following month will be in inventory at the end of each month
The budgeted production and production costs for the year ending 31 December 2023 are as follows:
36 000 units
Production
Direct materials cost per unit
Direct labour cost per unit
Other manufacturing costs
R50
R30
R216 000
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