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Rock Solid concrete manufacturers supply cement mixture directly to both the construction industry and building supply retailers located throughout the country. The company has three machines each with a 100% capacity (60 hours) of 40 tons per week. Due to electricity supply concerns, the machines have only been able to operate at 75% capacity. One ton of cement mixture requires 400 kg of Product M and 600 kg of Product N. Ignore any wastage. Product M is purchased at R 80/kg and Product N at R25/kg. Each machine requires five operators. Assume four (4) weeks per month. All materials purchased are used in the mix of cement and all cement is sold in the month it is manufactured. The cement plant takes up 90% of the total floor space. The following is an extract of some of the transactions for the month PRODUCT COST NO TRANSACTION Direct Direct Material Labour PERIOD COST Marketing/ Distribution/ Selling cost 1 Purchase the required quantity of Product M for the month 2 Purchase the required quantity of Product N for the month 3 The machine operators earn R2 000 each per week 4 The factory supervisor earns R35 000 per month 5 Depreciation per machine per annum amounts to R156 000 6 Rates and taxes amount to 7 R18 000 per month. Apportion the cost according to floor space Each machine requires 15 litres of oil per 20-hour operation. Oil costs R275 per litre 8 The general manager earns R50 000 per month 9 Carriage on sales amounts to R3 500 per 5 tons delivered 10 Salesmen commission amounts to R15 per bag sold, the cement is packaged in bags of 20kg each Manufacturing Admin Overheads Cost

Rock Solid concrete manufacturers supply cement mixture directly to both the construction industry and building supply retailers located throughout the country. The company has three machines each with a 100% capacity (60 hours) of 40 tons per week. Due to electricity supply concerns, the machines have only been able to operate at 75% capacity. One ton of cement mixture requires 400 kg of Product M and 600 kg of Product N. Ignore any wastage. Product M is purchased at R 80/kg and Product N at R25/kg. Each machine requires five operators. Assume four (4) weeks per month. All materials purchased are used in the mix of cement and all cement is sold in the month it is manufactured. The cement plant takes up 90% of the total floor space. The following is an extract of some of the transactions for the month PRODUCT COST NO TRANSACTION Direct Direct Material Labour PERIOD COST Marketing/ Distribution/ Selling cost 1 Purchase the required quantity of Product M for the month 2 Purchase the required quantity of Product N for the month 3 The machine operators earn R2 000 each per week 4 The factory supervisor earns R35 000 per month 5 Depreciation per machine per annum amounts to R156 000 6 Rates and taxes amount to 7 R18 000 per month. Apportion the cost according to floor space Each machine requires 15 litres of oil per 20-hour operation. Oil costs R275 per litre 8 The general manager earns R50 000 per month 9 Carriage on sales amounts to R3 500 per 5 tons delivered 10 Salesmen commission amounts to R15 per bag sold, the cement is packaged in bags of 20kg each Manufacturing Admin Overheads Cost

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Rock Solid concrete manufacturers supply cement mixture directly to both the construction industry and building supply retailers located throughout the country. The company has three machines each with a 100% capacity (60 hours) of 40 tons per week. Due to electricity supply concerns, the machines have only been able to operate at 75% capacity. One ton of cement mixture requires 400 kg of Product M and 600 kg of Product N. Ignore any wastage. Product M is purchased at R 80/kg and Product Nat R25/kg. Each machine requires five operators. Assume four (4) weeks per month. All materials purchased are used in the mix of cement and all cement is sold in the month it is manufactured. The cement plant takes up 90% of the total floor space. The following is an extract of some of the transactions for the month PRODUCT COST PERIOD COST Marketing/ NO TRANSACTION Direct Direct Manufacturing Admin Material Labour Overheads Cost Distribution/ Selling cost 1 Purchase the required quantity of Product M for the month 2 Purchase the required quantity of Product N for the month 3 The machine operators earn R2 000 each per week 4 The factory supervisor earns R35 000 per month 5 Depreciation per machine per annum amounts to R156 000 000 Rates and taxes amount to R18 000 per month. Apportion the cost. according to floor space Each machine requires 15 litres of oil per 20-hour operation. Oil costs R275 per litre The general manager earns R50 000 per month 9 Carriage on sales amounts to R3 500 per 5 tons delivered 10 Salesmen commission amounts to R15 per bag sold, the cement is packaged in bags of 20kg each Q.2.2 Complete the above table by using monthly cost figures. Redraw the table. You do not need to copy the transaction detail. Only use the question number to indicate the question answered. To 6 7 8
Transcribed Image Text:Rock Solid concrete manufacturers supply cement mixture directly to both the construction industry and building supply retailers located throughout the country. The company has three machines each with a 100% capacity (60 hours) of 40 tons per week. Due to electricity supply concerns, the machines have only been able to operate at 75% capacity. One ton of cement mixture requires 400 kg of Product M and 600 kg of Product N. Ignore any wastage. Product M is purchased at R 80/kg and Product Nat R25/kg. Each machine requires five operators. Assume four (4) weeks per month. All materials purchased are used in the mix of cement and all cement is sold in the month it is manufactured. The cement plant takes up 90% of the total floor space. The following is an extract of some of the transactions for the month PRODUCT COST PERIOD COST Marketing/ NO TRANSACTION Direct Direct Manufacturing Admin Material Labour Overheads Cost Distribution/ Selling cost 1 Purchase the required quantity of Product M for the month 2 Purchase the required quantity of Product N for the month 3 The machine operators earn R2 000 each per week 4 The factory supervisor earns R35 000 per month 5 Depreciation per machine per annum amounts to R156 000 000 Rates and taxes amount to R18 000 per month. Apportion the cost. according to floor space Each machine requires 15 litres of oil per 20-hour operation. Oil costs R275 per litre The general manager earns R50 000 per month 9 Carriage on sales amounts to R3 500 per 5 tons delivered 10 Salesmen commission amounts to R15 per bag sold, the cement is packaged in bags of 20kg each Q.2.2 Complete the above table by using monthly cost figures. Redraw the table. You do not need to copy the transaction detail. Only use the question number to indicate the question answered. To 6 7 8
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