Poma Africa Ltd manufacture tennis racquets. The company uses the job costing system to cost its production. The following information relates to Poma Africa Ltd for the month of April 2020:
Schedule of costs relating to jobs in process as at 31 March 2020
Direct Labour Overheads
2 100 315
5 900 920
3 465 10 120
Schedule of costs incurred on jobs during April 202
Job (No of units)
A33 (20 racquets) C23 (55 racquets) F54 (25 racquets) L49 (15 racquets)
Direct Material Direct Labour
2 400 450 11 800 2 300 3 700 690 1 300 350
Factory overheads are applied at a rate of 10% of total direct cost.
© The Independent Institute of Education (Pty) Ltd 2020
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The only job still in process at 30 April 2020 was L49. All other jobs were completed during the month.
Job C23 was completed at a total cost of R25 630, this amount includes applied overhead costs of R1 410.
Sales during April were as follows: A33: All 20 racquets were sold at cost plus 40% mark‐up. F54: 23 racquets were sold at a price of R290 per racquet. C23: All 55 racquets were sold at cost plus 35% mark‐up.
Actual factory overheads for April 2020 were R3 250.
Marketing and distribution expenses amount to R4 700 for the month of April 2020.
Round to two decimal places where necessary.
Q.7.1 Calculate the cost of jobs A33 and F54 completed during April 2020.
Q.7.2 Calculate the closing work‐in‐process as at 30 April 2020.
Q.7.3 Calculate the net income for the month of April 2020.
Q.7.4 Calculate the closing balance of finished goods as at 30 April 2020.
Q.7.5 Calculate the over/under applied overhead for April 2020.
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