Prepare the Production Cost Statement for the year ended 30 April 2016, including the calculation of direct materials used.

Here are the solutions for the production cost statement and the abridged income statement.

5.1.1 Prepare the Production Cost Statement for the year ended 30 April 2016.

Step 1: Calculate Direct Materials Used.
We start with the opening raw material stock, add purchases, subtract returns, and then subtract the closing raw material stock.

$$\text{Opening Raw Material Stock (30 April 2015)} = \text{R}37\,600$$ $$\text{Purchases of Raw Materials} = \text{R}555\,000$$ $$$$