Cuisine (Pty) Ltd produces luxury water bottles. During the year 2021, the company produced 28 000 bottles and sold 26,500 bottles. Fixed production overheads are applied using units produced as allocation base. The actual fixed production overheads were the same as what had originally been budgeted, but actual production was 2 000 units more than expected. The direct labour hours for the year amounted to 30 000 hours.
Sales Price per unit= Rs 25.00
Total Variable Direct Material = Rs 65,000
Variable Direct Wages per hour= Rs 2.50
Total Budgeted Fixed Production Overheads = Rs 260,000
Total Fixed selling and Marketing costs= Rs 50,000
Variable selling and marketing costs per unit) = Rs 2.00
REQUIRED: Calculate the value of closing Inventory Finished Goods using the Absorption Costing system.