QUESTION 4
[25 MARKS]
Windhoek Glass Manufacturers (WGM} is a company based in Windhoek that manufactures and sell
'green glass'. The term 'green glass' was coined in when the company adopted technology a few years
back that enables the company to produce glassthat has the ability to amplify the natural light that comes
into a room thereby leading to zero usage of electric lights during the day. As a result of this innovative
idea, the 'green glass' has managed to get great popularity in the market. The only challenge that WGM
faces is that the customers ordering this product are not standard customers. They come with different
specifications which means each customer's order is different. WGM therefore has implemented a
successful job costing system. WGM has recently got an order from a new customer that requires these
'green glass' panels for a new community library in Windhoek. WGM's accountant has given this job order
an identifiable number as Job A263. The accountant has also provided the following information:
Direct Materials:
WGM uses the weighted average cost system to price its issues of materials to production.
Beginning inventory at 1st April:
20 size Large glass panels @ N$400 each
80 type Big chrome fittings @ N$20 each
Purchases:
1st April: 50 size Large glass panels@ N$377.60 each
15th April: 90 type Big chrome fittings@ N$21.70 each
Issuesto production (Job A263}:
17th April: 15 size Large glass panels
19th April: 90 type Big chrome fittings
Direct Labour:
Assembly: 42 hours @ N$180 per hour
Finishing: 16 hours @ N$160 per hour
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