QUESTION FOUR

4.1 Calculate the value of closing inventory on 31 January 2022 using the:

The following transactions of Hector Limited took place during January 2022 in respect of component J used in production:

4.1.1 First-in-first-out (FIFO) method

4.1.2 Weighted Average Cost Method

4.2 Use the information given below to calculate the net wage of H, Kane for the last week of May 2021.

INFORMATION

H, Kane is employed by Hot- Spur Enterprises. The normal working week is 45 hours.

H, Kane worked for 48 hours during the last week of May 2021. She is remunerated at R80 per hour during normal working hours. Overtime is calculated at 1½ times the normal rate.

The following are her deductions for the week:

Medical aid fund                             R350

Pension fund                                   8% of the normal wages

Income tax                                       R830

Hot- Spur Enterprises contributes the same amount as the employees towards the medical aid fund and pension fund.