QUESTION 1 (22 marks but mark up to 20)

SHOW ALL CALCULATIONS

ROUND OFF UNIT ANSWERS TO FOUR DECIMAL PLACES

a. Sales budget

Match Practice
Budgeted sales in units 120000 5000
/ by box of 5 balls 5 5
Number of boxes 24000 1000
x by selling price per box (R) R100 R50
= Total sales (R) R2 400 00√ R50 000√

b. Production budget

Match Practice
Budgeted sales in units 120000 5000
Add ending stock 12000√ 500√
= Total need to be produced 132000 5500
Less beginning stock (10000) (500)
= Required production units 122000√ 5000√
batch of 100 balls 1220 50

c. Direct material budget

RUBBER
MATCH BALL
Required production units per batch 1220√
x by raw material usage per unit 15 L
= Raw materials for production 18300 L√
PRACTICE BALL
Required production units per batch
50√
x by raw material usage per unit
30 L
= Raw materials for production
1500 lL√

TOTAL MATER FOR PRODUCTION 19800 √

Add ending raw material 300 L

Total raw material available in 20 100 L

Less beginning raw material in Kg (240) √

= Raw material to be purchased in 19 860 L√

x by raw material cost per unit (R) R10
 = Total raw material purchases in (R) R198 600√

d. Direct labour budget

Match Practice
Number of batches 1220 50
x by direct labour time per batch 2 1
= Total hours needed for production 2440√ 50√
x by labour rate per BARCH (R) R50 R50
= Total direct labour cost R122 000 R2500√
√

e. Manufacturing overheads budget

Match Practice
Number of batches 1220 50
x by Machine time per batch 3 2
= Total variable overheads batch 3660 √ 100√
x by V MOH rate per BARCH (R) R10 R10
Total V MOH R36600√ R1000√
Add fixed overheads R10152

Total MOH R47 752

QUESTION 2 (20 marks)

SHOW ALL CALCULATIONS
ROUND OFF UNIT ANSWERS TO FOUR DECIMAL PLACES

Dec Jan
Opening cash balance R28 000 R12 110
Receipts R36 160 R58 760
Cash sales R8 000 R14 000
Debtors collection R28 160 R33 760 
Loan
Cash available R64 160 R70 870
Payments R52 050 R61 900
Creditors R41 250 R45 000
Dividends R5 000
Selling expenses R7 200 R11 700
Administrative expenses
(less depreciation) R3 600  R5 200
Profit or deficit R12 110 R3 970

Loan R60 30

Closing cash balance R12 110 R10 000

NB: Mark half mark for

all highlighted figures
below (5 mark)
Debtors collection
Dec Jan
October R4 800
November R20 160 R5 760
December R3 200 R22 400
January R5 600
February
R28 160 R33 760

Creditors payments
Dec Jan
November R15 000
December R26 250 R26 250
January R18 750
February
R41 250 R45 000

QUESTION 3 (8 marks)
SHOW ALL CALCULATIONS
ROUND OFF UNIT ANSWERS TO FOUR DECIMAL PLACES

1. A
2. C
3. D
4. C
5. B (mark every one correct for this one)
6. C
7. C
8. D