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The following information consist of inventory of Nero Ltd at financial yea...
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The following information consist of inventory of Nero Ltd at financial year ended, 31 December 2023:
|
Opening inventory
R
|
Closing inventory
R
|
Net realisable value
R
|
Raw material
|
218 850
|
196 800
|
170 200
|
Work in progress
|
122 400
|
140 550
|
100 000
|
Finished goods
|
288 000
|
274 800
|
400 000
|
Packaging material
|
10 950
|
12 600
|
11 250
|
Stationery
|
4 950
|
4 200
|
3 750
|
The following purchase, sales, and payment transactions below were extracted from the accounting records of Nero Ltd for the financial year ended 31 December 2023:
|
R
|
Revenue
|
2 936 100
|
Raw material
|
565 350
|
Administration expenses
|
580 650
|
Transport costs of raw material
|
48 600
|
Selling expenses
|
98 100
|
Variable production overhead costs
|
242 400
|
Fixed production overheads
|
276 750
|
|
|
Additional information
Fixed production overhead costs are allocated at R60 per unit based on a normal capacity of 4 000 units.
Required:
The following is the gross profit of Nero Ltd for the financial year end on 31 December 2023