MAC2601 EXAM PACK EXAM REVISION PACK 2017

MAY/JUNE 2014 EXAM Question 1 (20 marks, 24 minutes) Gupta Gate (Pty) Ltd manufactures and sells bullet proof vests. The following information is available for 2013 (actual) and 2014 (budget). Production (units) Sales (units) Opening inventory (Beginning of 2013) (units) 1 500 R R Variable cost per unit: Manufacturing 25 28 Direct labour 10 15 Selling cost 5 5.5 40 38.5 Fixed costs: Manufacturing overheads Selling and administrative costs Additional information: Selling price per unit per bullet proof vest is R125 for 2013 and R135 for 2014 1.1 Calculate the value of closing stock at the end of 2013 for financial accounting purposes i.e. for IFRS purposes a) R80 000 b) R59 500 c) R80 750 d) R75 800 1.2 Calculate the value of closing stock at the end of 2013 using the direct costing method. a) R50 000 b) R68 000 c) R95 500 d) R59 500 1.3 Calculate net profit before tax using the direct costing method (FIFO) (2014 period) a) R163 250 b) R162 350 c) R188 500 d) R 229 850