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Dakalo Ltd, a manufacturer of beauty products, value its inventory using First-in-first out (FIFO). The...

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Accounting

Dakalo Ltd, a manufacturer of beauty products, value its inventory using First-in-first out (FIFO). The actual results for the 2024 financial year are the following
\table[[Details,R],[Sales Revenue,285600000],[Direct raw materials,95000000],[Direct labour,48000000],[Variable manufacturing overheads,32000000],[Fixed manufacturing overheads,60000000],[Variable selling cost,3000000],[Fixed selling cost,5000000],[Non-manufacturing cost,35000000]]
The opening inventory is 120000 units, actual production 2000000 units and sales 2040000 units.
Budgeted and actual fixed manufacturing overhead amounts were equal.
For this question only assume that:
i. Opening inventory is valued at R110 per unit
ii. An absorption costing system is used.
The total gross profit for Dakalo Ltd is:
Select one:
a. R46800000
b. None of the options
c. R43920000
d. R42000000
e. R37400000
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