60.1K

Verified Solution

Link Copied!

QUESTION $6$

Mohale $($Pty$)$ Ltd $("$Mohale$")$ is a manufacturer of computer tablets under the brand M$-$Tablet. Mohale uses the direct costing system, value all their inventory items using the FIFO method, and has a $30$ June financial year$-$end. Furthermore, the company adopted a standard costing system to evaluate the performance of all their products. There has been an unexpected increase in demand in all four versions of computer tablets, given the rise in use of online platforms for school, work and general use.

The M$-$Tablets are made from copper frames $($body and parts$)$ which are sourced from another computer and tablet manufacturer, BiqBig $($Pty$)$ Ltd$.$ Mohale then converts the frames into tablets according to their specifications and thhteafter add their logo$.$ The company budgeted to manufacture and sell $9000M-$Tablets at a selling price of R$5000$ each during the month of June $2021.$

Mohale held an executive directors' meeting on $30$ June $2021.$ The meeting was held virtually as part of the company complying with the COVID$-19$ regulations. The following are the extracts from the minutes of the aforementioned meeting:

Standard and actual results for the month ended $30$ June $2021$

QUESTION $6$

Mohale $($Pty$)$ Ltd $("$Mohale$")$ is a manufacturer of computer tablets under the brand M$-$Tablet. Mohale uses the direct costing system, value all their inventory items using the FIFO method, and has a $30$ June financial year$-$end. Furthermore, the company adopted a standard costing system to evaluate the performance of all their products. There has been an unexpected increase in demand in all four versions of computer tablets, given the rise in use of online platforms for school, work and general use.

The M$-$Tablets are made from copper frames $($body and parts$)$ which are sourced from another computer and tablet manufacturer, BigBig $($Pty$)$ Ltd$.$ Mohale then converts the frames into tablets according to their specifications and thenteafter add their logo$.$ The company budgeted to manufacture and sell $9000M-$Tablets at a selling price of R$5000$ each during the month of June $2021.$

Mohale held an executive directors' meeting on $30$ June $2021.$ The meeting was held virtually as part of the company complying with the COVID$-19$ regulations. The following are the extracts from the minutes of the aforementioned meeting:

Standard and actual results for the month ended $30$ June $2021$

CHAPTER $3$: Decision$-$making based on budgeting and expenditure forecasting

$\backslash$table$[[$Details$,$Notes,Standard,$\frac{?}{\text{b}\text{a}\text{r}}($ Actual $)$

Answer & Explanation Solved by verified expert

See Answer