The following information consist of inventory of Nero Ltd at financial

year ended, 31 December 2023:

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:

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 carrying amount of inventory of Nero Ltd

at financial

year end 31 December 2023:

Cyclepro

Ltd, a bicycle retailer who operates in Pretoria, ordered 1 500 new Western

Flyer Frames from Singapore for their exhibition to be held at the Rand Show.

The Western Flyer Frames were received from their supplier on 1 February 2024.

The invoice price of the Western Flyer Frames was R2 500 each (before a trade

discount of 5%) and is payable on 31 March 2024, the year-end of Cyclepro Ltd.

A goods in transit insurance was taken

out for a non-refundable R1 500 deposit for delivery of the items to Cyclepro Ltd’s

warehouse. On route to Pretoria, an attempt was made to hijack the delivery

truck and 25 of the Western Flyer Frames were irreparably damaged on 1 February

2024. A Claim was submitted to the insurance company.

The following cash costs regarding the purchase were:

Additional information:

• Inventory is valued at the lower of cost

  and net realisable value on a first-in-first-out basis.

• Inventory shipping terms is free on

  board (products of Cyclepro Ltd when shipped)

Required:

What will the cost of inventory be after delivery per unit at

year-end 31 March 2024 (round up to the nearest rand)?

BMX Ltd,

a bicycle retailer who operates in Johannesburg, ordered 17 500 new bicycle

frames from USA for their exhibition to be held at the Bicycle Fair. The

bicycle frames were received from their supplier on 1 February 2024. The

invoice price of the bicycle frames was R22 500 each (before a trade discount

of 20%) and is payable on 31 March 2024, the year-end of BMX Ltd.

A goods

in transit insurance was taken out for a non-refundable R52 500 deposit for

delivery of the items to Cycle Ltd’s warehouse.

On route

to Johannesburg, an attempt was made to hijack the delivery truck and 250 of

the bicycle frames were irreparably damaged. A claim was submitted to the

insurance company.

The following cash costs regarding the purchase are

applicable:

Additional information:

Inventory is valued

at the lower of cost and net realisable value on the first-in-first-out basis.

REQUIRED: 

What will the cost of inventory be after delivery, per unit (rounded off

to the nearest Rand), at year-end 31 March 2024?:

The normal capacity of Amplify Ltd is 700 000 units per annum.

The raw material cost is R440 per unit and direct labour is R500 per unit.

Variable production overheads are R120 per unit and fixed production overheads

incurred amounts to R10 500 000. The closing balance of finished goods is 19

000 units (assume there is no opening balance).

REQUIRED:

Which amount is the correct cost of sales figure if the

actual production was 560 000 units for the year?

Assume that a company

purchases 200 units at R20 each, and then purchases a further 300 units at

R25 each. At year-end, there are 330 units on hand.

Required:

If the First-in, first out (FIFO) method of

valuation is applied, the value of the closing inventory will be:

The following information was obtained from the accounting records of Mzinto

Ltd on 1 October 2022.

Additional

information:

a) 

300 000

Ordinary shares were issued at R4 each at incorporation, on 1 October 2019.

b)

100 000 Ordinary shares were issued at R5

each, and 12 000 10% cumulative preference shares issued at R8.50 per share on

1 February 2023.

c) 

On 1 May 2023, a capitalisation issue of one

new ordinary share for every five ordinary shares held was made from available

profits, at R7.50 per share.

d) 

An ordinary dividend of 12c per

share was declared to all registered ordinary shareholders on 30 September

2023. The company did not pay or declare any dividends during the previous

financial year.

What is the total amount of

dividends for the financial year-end 30 September 2023 of Mzinto Ltd?

According

to IFRS 18 if an entity does not invest in property as a main business

activity. 

Required:

Into which category will it classify their employees’ salaries that

manages property that the entity own?

The following information was obtained from the accounting records of Mzinto

Ltd on 1 October 2022.

Additional

information:

a) 

300 000

Ordinary shares were issued at R4 each at incorporation, on 1 October 2019.

b)

100 000 Ordinary shares were issued at R5

each, and 12 000 10% cumulative preference shares issued at R8.50 per share on

1 February 2023.

c) 

On 1 May 2023, a capitalisation issue of one

new ordinary share for every five ordinary shares held was made from available

profits, at R7.50 per share.

d) 

An ordinary dividend of 12c per

share was declared to all registered ordinary shareholders on 30 September

2023. The company did not pay or declare any dividends during the previous

financial year.

The amount of equity of Mzinto Ltd for the financial year end 30 September 2023 is?

The following list of balances appear, amongst other in the accounting

records of Lipton Ltd on 28 February 2025. The issued share capital of Lipton

Ltd on date of incorporation consisted of the following:

Lipton Ltd was incorporated on 1 March 2023. The

issued share capital has not changed since the date of incorporation. No

dividends were declared during the previous financial year, but during the

current financial year ended 28 February 2025 an ordinary dividend of 12c per

share was declared.

Required:

Which

one of the following represents the total dividend that should be disclosed in

the financial statements on 28 February 2025?

The following balances were taken from the books of KZN Ltd on 31

December 2024, the financial year end of the company:

Occasionally companies build up large reserves from their accumulated

profits. To enable shareholders to derive some tangible benefits from these

reserves, the company may decide to capitalise these reserves and distribute

them among the shareholders in the form of capitalisation shares.

Included

in the capital structure above are the following transaction that took place

during the current financial year that ended on 31 December 2024:

 · 

A Capitalisation issue that the directors made on 1

December 2024 of one ordinary share for every three shares held at R1,00 per

share;

The directors of the company also approved

the following transactions during the year:

· 

The issue of 10 000 8% cumulative preferences

shares at R4 per share on 1 September 2024.

· 

Dividends on ordinary shares was declared at 5c per

share on 31 December 2024. No dividends were declared or paid during

the previous financial year.

What is the total dividend amount payable for

the year ended 31 December 2024?