All amounts are in thousands of rands r000 sales 2009

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Unformatted text preview: years ended 31 March. All amounts are in thousands of rands (R’000). Sales 2009 R’000 30,000 2010 R’000 32,000 26,250 0 35,525 -9,275 26,395 9,275 40,480 -23,360 27,200 23,360 40,480 -36,640 Adjustment for over or under production Gross margin 3,750 225 3,975 5,605 180 5,785 -3,150 -150 -3,000 -3,160 -160 -3,000 -3,170 -170 -3,000 825 2,625 Sales price (per unit) Variable production cost (per unit) Sales (units) Production capacity (units) Expected production (units) Actual production (units) 6,800 180 6,980 Marketing and administrative expenses Variable Fixed You are a new member of the financial team and Bill Peters enlists your help “I will have my assistant get some numbers and you can help me put something together. You know my gut feeling is that the division has overstated its profits and is actually running at a loss because he is producing for inventory”. A day later Bill Peters assistant presents you the following schedule: 3,810 2011 R200 R100 170,000 300,000 250,000 253,000 What do you think Bill Peters meant by “producing for inventory”? (3 Marks) 2. Prepare a brief schedule to determine the opening and closing inventory of Wachovia (Pty) Ltd for the three years ended 31 March 2009 to 2011. Place the three y...
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This document was uploaded on 04/05/2014.

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