QUESTION 1 Clara Kingley has her own business, Mink Stores. She sells blankets,
pillows and bed linen for cash only. The accountant always maintains a
favourable bank balance. The following transactions, amongst others, took
place in the business during February 2020.
REQUIRED:
ANALYSE THE TRANSACTIONS ACCORDING TO THE FOLLOWING
HEADINGS: (30 marks)
Subsidiary Book, Account Debited, Account Credited, Effect on the
Accounting Equation A + 0 + L. The net effect must be shown.
e. g. Received rent for two months from the tenant, G Genius, Rent is R500
per month
TRANSACTIONS DURING FEBRUARY 2020
4
5
Purchased 30 blankets on credit from Sunshine Stores. The
blankets cost R80 each.
The blankets were delivered by Kita Transport. Payment of R600
was made electronically - being cost of delivery.
Received the quarterly (3 months) interest at 9% p. a. from Usher
Bank on a fixed deposit of R30 000.
Ciara's daughter moved into a boarding home called Fulfill Your
Dreams. Payment of R800 was done via EFT to pay the term's
boarding fees.
Paid casual wages from petty cash, R200
25
30​

The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below.a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below.a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02